Hang Ten Company manufactures surf boards and uses an activityminusbased costing system to allocate all manufacturing conversion costs. Each surf board consists of 30 separate parts totaling $ 155 in direct materials, and requires 3 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $ 3.75 per part Machining Machine hours $ 2.00 per machine hour Assembling Number of parts $ 1.50 per part Packaging Number of finished units $ 2.75 per finished unit What is the total manufacturing cost per surf board?
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