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:
$$\begin{array} { | c | c | c | c | c | }
\hline \text { Activity } & \text { Driver } & \begin{array} { c }
\text { Estimated } \
\text { Overhead Cost }
\end{array} & \begin{array} { c }
\text { Sailfish Rental } \
\text { Estimate }
\end{array} & \begin{array} { c }
\text { Boat Rides } \
\text { Estimate }
\end{array} \
\hline \text { Lifeguarding } & \text { \#of Labor hours } & \mathbf { \$6 3 , 9 4 0 } & \mathbf { 3 , 2 8 0 } \text { hours } & \mathbf { 2 , 2 8 0 } \text { hours } \
\hline \text { Maintenance } & \text { Hours of riding time } & \mathbf { \$ 8 8 , 0 0 0 } & 1,500 \text { hours } & \mathbf { 2 , 5 0 0 } \text { hours } \
\hline
\end{array}$$
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?

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:
$$\begin{array} { | c | c | c | c | c | } 
\hline \text { Activity } & \text { Driver } & \begin{array} { c } 
\text { Estimated } \
\text { Overhead Cost }
\end{array} & \begin{array} { c } 
\text { Sailfish Rental } \
\text { Estimate }
\end{array} & \begin{array} { c } 
\text { Boat Rides } \
\text { Estimate }
\end{array} \
\hline \text { Lifeguarding } & \text { \#of Labor hours } & \mathbf { \$6 3 , 9 4 0 } & \mathbf { 3 , 2 8 0 } \text { hours } & \mathbf { 2 , 2 8 0 } \text { hours } \
\hline \text { Maintenance } & \text { Hours of riding time } & \mathbf { \$ 8 8 , 0 0 0 } & 1,500 \text { hours } & \mathbf { 2 , 5 0 0 } \text { hours } \
\hline
\end{array}$$
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?

Quizplus · Accepted Answer

The Answer of 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:
$$\begin{array} { | c | c | c | c | c | } 
\hline \text { Activity } & \text { Driver } & \begin{array} { c } 
\text { Estimated } \
\text { Overhead Cost }
\end{array} & \begin{array} { c } 
\text { Sailfish Rental } \
\text { Estimate }
\end{array} & \begin{array} { c } 
\text { Boat Rides } \
\text { Estimate }
\end{array} \
\hline \text { Lifeguarding } & \text { \#of Labor hours } & \mathbf { \$6 3 , 9 4 0 } & \mathbf { 3 , 2 8 0 } \text { hours } & \mathbf { 2 , 2 8 0 } \text { hours } \
\hline \text { Maintenance } & \text { Hours of riding time } & \mathbf { \$ 8 8 , 0 0 0 } & 1,500 \text { hours } & \mathbf { 2 , 5 0 0 } \text { hours } \
\hline
\end{array}$$
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?

Teal Sports Offers 2 Different Types of Water Sport Activities-Sailfish