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Question - Teal Sports offers 2 different types of water sport activities-sailfish rental and banana boat rides. The company has two different activities-lifeguarding and maintenance-that provide input into its cost objectives. Data on estimated overhead for the year follows:
Activity
Driver
Estimated Overhead Cost
Sailfish Rental Estimate
Boat Rides Estimate
Lifeguarding
# of Labor hours
$63,940
3,280 hours
2,280 hours
Maintenance
Hours of riding time
$88,000
1,500 hours
2,500 hours
The company provides 2,400 banana boat rides and 1,200 sailfish rentals each year. How much overhead will be assigned to each banana boat ride?
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