Tent Master produces Pup tents and Pop-up tents. The company budgets $295,000 of overhead cost and...

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Tent Master produces Pup tents and Pop-up tents. The company budgets $295,000 of overhead cost and 59,000 direct labor hours. Additional information follows. Per Unit Pup tent Pop-up tent Activity Assembly Electricity Materials purchasing Total Selling Price $ 74 69 Direct Materials $ 20 23 Budgeted Cost $ 177,000 41,000 77,000 $ 295,000 Direct Labor $ 43 27 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Budgeted Activity Usage 59,000 10,000 500 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 Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Activity Usage Pup tents 38,500 4,000 150 Pop-up tents 20,500 6,000 350 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). Tent Master produces Pup tents and Pop-up tents. The company budgets $295,000 of overhead cost and 59,000 direct labor hours. Additional information follows. Per Unit Pup tent Pop-up tent Activity Assembly Electricity Materials purchasing Total Selling Price $ 74 69 Direct Materials $ 20 23 Budgeted Cost $ 177,000 41,000 77,000 $ 295,000 Direct Labor $ 43 27 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Budgeted Activity Usage 59,000 10,000 500 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 Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Activity Usage Pup tents 38,500 4,000 150 Pop-up tents 20,500 6,000 350 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).

Answer rating: 100% (QA)

To compute the activity rates for each activity using activitybased costing you can use the followin... View the full answer