Sundance Skis Company is preparing its end-of-year gross margin computations. Sundance Skis manufactures three types of products: skis, snowboards, and snow skates. The following information, as of the end of the year, is available for these products:
Total manufacturing overhead is $1,125,000, with $506,250 related to batch-level activities and $618,750 related to product-line activities.
In the past, Sundance Skis has allocated manufacturing overhead based on the number of units produced. Prepare gross margin calculations for Sundance Skis' three divisions allocating manufacturing overhead according to the number of units produced.