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

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: $\begin{array}{|c|c|c|c|c|}\hline \text { Activity } & \text { Driver } & \begin{array}{c}\text { Estimated } \\\text { Overhead } \\\text { Cost }\end{array} & \begin{array}{c}\text { Sailfish Rental } \\\text { Estim ate }\end{array} & \begin{array}{c}\text { Boat Rides } \\\text { Estimate }\end{array} \\\hline \text { Lifeguarding } & \text { \# of Labor hours } & \$ 63,940 & 3,280 \text { hours } & 2,280 \text { hours } \\\hline \text { Maintenance } & \text { Hours of riding time } & \$ 88,000 & 1,500 \text { hours } & 2,500 \text { hours } \\\hline\end{array}$ 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