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Question - Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow.
Basco Boards
Shimano Boards
Production costs
Direct materials
$24.70
$37.40
Direct labor
$30.70
$52.40
Allocated overhead
$15.35
$19.40
Total units produced and sold
4,700
8,700
Total sales revenue
$411,250
$1,104,900
Gerald allocates production overhead using activity-based costing. lt allocates delivery expense and sales commissions, which amount to $57,500 per quarter, to the two products equally.
Required:
a. Compute the per-unit cost for each product.
b. Compute the profit for each product.
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