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

Question 27

Multiple Choice

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 $63,9403,280 hours 2,280 hours  Maintenance  Hours of riding time $88,0001,500 hours 2,500 hours \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?


A) $42.20
B) $73.24
C) $22.56
D) $33.84

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