Question: ( 1 ) Required information Compute an activity rate for each activity using activity - based costing. The following actual activity usage produced 1 0

(1)
Required information
Compute an activity rate for each activity using activity-based costing.
The following actual activity usage produced 10,000 Pup tents and 7,500 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product.
\table[[,Activity Usage],[Activity Cost Driver,Pup tents,Pop-up tents],[Direct labor hours(DLH),39,000,21,000],[Machine hours (MH),4,500,5,500],[Purchase orders(PO),200,300]]
Compute product cost per unit for Pup tents and for Pop-up tents.
For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
Complete this question by entering your answers in the tabs below.
Compute an activity rate for each activity using activity-based costing.
Note: Round "Activity Rate" to 2 decimal places.
\table[[Activity,Budgeted Cost,Budgeted Activity Usage,Activity Rate],[Assembly,$,240,000,60,000,direct labor hours,per direct labor hour],[Electricity,,42,000,10,000,machine hours,per machine hour],[Materials purchasing,,78,000,500,purchase orders,per purchase order]]
( 1 ) Required information Compute an activity

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!