How much overhead will be assigned to each banana boat ride

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Reference no: EM133127414

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?

Reference no: EM133127414

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