Job Costing

Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1,000 units, while 1 skates require 1.5 direct labor hours per unit, while skateboards require 1:25 direct labor hours per unit. The total estimated overhead for the period used an activity-based costing system, it would have the following three activity cost pools: Expected activity Estimated overhead cost $6,550 $16,000 $91450 Activity cost pool Roller skates Skateboards Total Setup costs 345 320 665 Engineering costs Maintenance costs 490 630 1,120 2,175 2,178 4,353 The overhead cost per skateboard using an activity-based costing system would be closest to (Round all answers to two decimal places.) OA $45.14 O B. $57.91 O C. $114.72 O D. $33.47 as is 1,000 units, while 1,730 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller doverhead for the period is $114,000. The company is looking at the possibility of changing to an activity- based costing system for its products. If the company wo decimal places.)

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