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Use the following information for the Problems below. (Algo)

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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 $318,000 of overhead costs and 53,000 direct labor hours for this year. Additional information follows.

Per Unit	Selling Price	Direct Materials	Direct Labor
Pup tent	$ 88	$ 24	$ 49
Pop-up tent	83	27	31

Problem C-3A (Algo) Pricing analysis with activity-based costing LO P2

Activity	Budgeted Cost	Activity Cost Driver	Budgeted Activity Usage
Assembly	$ 212,000	Direct labor hours	53,000
Electricity	35,000	Machine hours	10,000
Materials purchasing	71,000	Purchase orders	500
Total	$ 318,000

Required: 1. Compute an activity rate for each activity using activity-based costing. 2. The company used the activities below to produce 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead costs to Pup tents and to Pop-up tents and compute overhead cost per unit for each.

Activity Cost Driver	Activity Usage
	Pup tents	Pop-up tents
Direct labor hours	35,500	17,500
Machine hours	4,000	6,000
Purchase orders	150	350

3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the selling price per unit minus the product cost per unit.