Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and...
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Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and 42,000 direct labor hours. Additional information follows. Per Unit Pup tent Selling Price $ 78 Direct Materials $ 20 Direct Labor $ 45 Pop-up tent 73 25 30 es Problem 17-3A (Static) Using activity-based costing to allocate overhead cost, and compute overhea cost per unit and gross profit per unit LO P3 Activity Budgeted Cost Assembly $ 168,000 Activity Cost Driver Direct labor hours (DLH) Budgeted Activity Usage Electricity 24,000 Machine hours (MH) Materials purchasing 60,000 Purchase orders (PO) 42,000 10,000 400 Total $252,000 Required: 1. Compute an activity rate for each activity using activity-based costing 2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and Pop-up tents and compute overhead cost per unit for each product. Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Activity Usage Pup tents 30,000 4,000 150 Pop-up tents 12,000 6,000 250 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). Activity Activity Usage Assembly Electricity Materials purchasing Total allocated cost Units produced Overhead cost per unit Activity Assembly Electricity Materials purchasing Total allocated cost Units produced Allocate overhead to Pup tent direct labor hours machine hours Activity Rate Allocated Cost purchase orders per direct labor hour per machine hour I per purchase order $ 0 0 0 0 Allocate overhead to Pop-up tent Activity Usage Activity Rate Allocated Cost $ 0 0 0 $ 0 Required 1 Required 2 Required 3 Required 4 Compute product cost per unit for Pup tents and for Pop-up tents. (Round "Act places.) Per Unit Direct Materials Product Cost Direct Labor Overhead per Unit Pup tent $ Pop-up tent 20.00 $ 25.00 45.00 30.00 Required 1 Required 2 Required 3 Required 4 For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). (Round "Activity Rate" and final answers to 2 decimal places. Enter any product costs in excess of selling prices as negative values.) Per Unit Pup tent Selling Price Product Cost Gross Profit $ 78.00 Pop-up tent 73.00 < Required 3 Required 4 > Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and 42,000 direct labor hours. Additional information follows. Per Unit Pup tent Selling Price $ 78 Direct Materials $ 20 Direct Labor $ 45 Pop-up tent 73 25 30 es Problem 17-3A (Static) Using activity-based costing to allocate overhead cost, and compute overhea cost per unit and gross profit per unit LO P3 Activity Budgeted Cost Assembly $ 168,000 Activity Cost Driver Direct labor hours (DLH) Budgeted Activity Usage Electricity 24,000 Machine hours (MH) Materials purchasing 60,000 Purchase orders (PO) 42,000 10,000 400 Total $252,000 Required: 1. Compute an activity rate for each activity using activity-based costing 2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and Pop-up tents and compute overhead cost per unit for each product. Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Activity Usage Pup tents 30,000 4,000 150 Pop-up tents 12,000 6,000 250 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). Activity Activity Usage Assembly Electricity Materials purchasing Total allocated cost Units produced Overhead cost per unit Activity Assembly Electricity Materials purchasing Total allocated cost Units produced Allocate overhead to Pup tent direct labor hours machine hours Activity Rate Allocated Cost purchase orders per direct labor hour per machine hour I per purchase order $ 0 0 0 0 Allocate overhead to Pop-up tent Activity Usage Activity Rate Allocated Cost $ 0 0 0 $ 0 Required 1 Required 2 Required 3 Required 4 Compute product cost per unit for Pup tents and for Pop-up tents. (Round "Act places.) Per Unit Direct Materials Product Cost Direct Labor Overhead per Unit Pup tent $ Pop-up tent 20.00 $ 25.00 45.00 30.00 Required 1 Required 2 Required 3 Required 4 For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). (Round "Activity Rate" and final answers to 2 decimal places. Enter any product costs in excess of selling prices as negative values.) Per Unit Pup tent Selling Price Product Cost Gross Profit $ 78.00 Pop-up tent 73.00 < Required 3 Required 4 >
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