Tent Master produces Pup tents and Pop-up tents. The company budgets \(\$ 252,000\) of overhead cost and 42,000 direct labor hours. Additional information follows.

Required
1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 42,000 direct labor hours.
2. Pup tents use 3 direct labor hours (DLH) per unit and Pop-up tents use 2 direct labor hours per unit. Compute the overhead cost per unit for each product.
3. Compute the product cost per unit for each product.
4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).

Transcribed Image Text:

Per Unit Pup tent... Pop-up tent...... Selling Price $78 73 Direct Materials $20 25 Direct Labor $45 30