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ensure that costs are appropriately assigned to the company's products. At the same time, the system that is used must not be so complex that its costs are greater than its benefits Dianc has decided to use the following activities and costs to evaluate the methods of assigning overhead. A5biane examines the dati, the decides that the cost of eperation the oven for the rotomolded kavaks and the cest of operatine the yacuum line for the composite kivaks can be diredly andigned to rach of these prodict lines and do not need to be assighed with the other cosis Fer nurpmes of this analvik, assume that Cur rent Deciens unes 5248,000 in derect latior eols to produce 1,000 composite kayads and $28l000 in cirect labor cosis to produce 4.000 rotomolded kay aka each yeac. One method of assigning overhead would assign the common costs to each product line by using an assignment basis such as the number of employees working on each type of kayak or the amount of factory space used for the production of each type of kayak. Diane knows that about 50% of the area of the plant and 50% of the employees work on the composite kayaks. and the remaining space and other employees work on the rotomolded kayaks. Using this information and remembering that the costs of operating the oven and vacuum line have been directly assigned, determine the total amount to be assigned to the composite kayak line and the rotomolded kayak line, and the amount to be assigned to each of the units in each line. (Round cost assigned per unit to 2 decimal places, eg. 125.25 . Another method of assigning overhead is to use direct labor dollars as an assignment basis. Remembering that the costs of the oven and the vacuum line have been assigned directly to the product lines, allocate the remaining costs using direct labor dollars as the allocation basis. Then, determine the amount of overhead that should be assigned to each unit of each product line using this method. (Round cost assigned per unit to 2 decimal places, eg. 125.25.) What amount of overhead should be assigned to each composite kayak using this method? What amount of overhe assigned to each rotomolded kayak using this method? (Round cost assigned per unit to 2 decimal places, eg. 125.25.)

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