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[The following information applies to the questions displayed below.] Tent Master produces Pup tents and Pop-up tents. The company budgets $264,000 of overhead cost and 44,000 direct labor hours. Additional information follows.

Per Unit	Selling Price	Direct Materials	Direct Labor
Pup tent	$ 90	$ 23	$ 53
Pop-up tent	85	32	38

Problem 17-3A (Algo) Using activity-based costing to allocate overhead cost, and compute overhead cost per unit and gross profit per unit LO P3

Activity	Budgeted Cost	Activity Cost Driver	Budgeted Activity Usage
Assembly	$ 176,000	Direct labor hours (DLH)	44,000
Electricity	26,000	Machine hours (MH)	10,000
Materials purchasing	62,000	Purchase orders (PO)	500
Total	$ 264,000

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 8,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product.

Activity Cost Driver	Activity Usage
	Pup tents	Pop-up tents
Direct labor hours(DLH)	31,000	13,000
Machine hours (MH)	4,000	6,000
Purchase orders(PO)	200	300

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).

Complete this question by entering your answers in the tabs below. Compute an activity rate for each activity using activity-based costing. (Round "Activity Rate" to 2 decimal places.) Complete this question by entering your answers in the tabs below. The following actual activity usage produced 10,000 Pup tents and 8,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product. (Round "Activity Rate" and "Overhead per unit" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Compute product cost per unit for Pup tents and for Pop-up tents. (Round "Activity Rate" and final answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. 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.)