Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitablity is analyzed as follows: T-SHIRTS...

 

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Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitablity is analyzed as follows: T-SHIRTS 204,000 units SWEATSHIRTS 34,000 units $29.00 * * Production and sales volume Selling price $18.00 Direct materlal $ 5.00 $ 7.20 $ 3.00 $13.80 $ 7.00 $6.80 $1.60 Direct labor $4.30 Manufacturing overhead Gross profit Selling and administrative Operating profit $4.60 $ 7.50 $3.50 $4.00 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost Informatlon: Activity Supervision Inspection Activity cost $130,560 $69,300 Activity-cost driver Direct labor hours (DLH) Inspections Activities demanded T-SHIRTS 0.25 DLH/unit 51,000 DLHS 30,000 inspections SWEATSHIRTS 1.50 DLH/unit 51,000 DLHS 19,500 Inspections Using an ABC systern, next year's estimates show manufacturing overhead costs will total $227,300 for 46,000 T-shirts. If all other T-shirt costs and sales prices remaln the same, the profitability that can be expected is A) $4.94 per t-shirt C) ($0.27) per t-shirt (Round the final answer to the nearest whole cent.) B) $3.66 per t-shirt D) $8.60 per t-shirt Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitablity is analyzed as follows: T-SHIRTS 204,000 units SWEATSHIRTS 34,000 units $29.00 * * Production and sales volume Selling price $18.00 Direct materlal $ 5.00 $ 7.20 $ 3.00 $13.80 $ 7.00 $6.80 $1.60 Direct labor $4.30 Manufacturing overhead Gross profit Selling and administrative Operating profit $4.60 $ 7.50 $3.50 $4.00 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost Informatlon: Activity Supervision Inspection Activity cost $130,560 $69,300 Activity-cost driver Direct labor hours (DLH) Inspections Activities demanded T-SHIRTS 0.25 DLH/unit 51,000 DLHS 30,000 inspections SWEATSHIRTS 1.50 DLH/unit 51,000 DLHS 19,500 Inspections Using an ABC systern, next year's estimates show manufacturing overhead costs will total $227,300 for 46,000 T-shirts. If all other T-shirt costs and sales prices remaln the same, the profitability that can be expected is A) $4.94 per t-shirt C) ($0.27) per t-shirt (Round the final answer to the nearest whole cent.) B) $3.66 per t-shirt D) $8.60 per t-shirt

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ABC costing uses different cost drivers for allocating activity costs to products 46000 tshirts ... View the full answer