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Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of...

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Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1,000 units, while 1,720 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 4.5 direct labor hours per unit, while skateboards require 2.25 direct labor hours per unit. The total estimated overhead for the period is $113,800. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity - based costing system, it would have the following three activity cost pools: Expected activity Activity cost pool Setup costs Engineering costs Maintenance costs Estimated overhead cost $6,050 $16.200 $91.550 Roller skates 345 480 2.375 Skateboards 240 690 2,168 Total 585 1,170 4,543 The cost pool activity rate for Engineering Costs would be closest to (Round all answers to two decimal places.) O A. $20.15 per engineering hour. OB. $7.47 per engineering hour. OC. $10.34 per engineering hour. OD. $13.85 per engineering hour

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