27.

Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS Production and sales volume 26,250 units T-SHIRTS 72,000 units $15.00 $1.50 Selling price Direct material $29.00 $5.00 $7.20 Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit $4.20 $1.80 $7.50 $3.60 $3.90 $3.00 $13.80 $7.00 $6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision Inspection Activity cost $108,480 $93,000 Activity - cost driver Direct labor hours (DLH) Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.75 DLH/unit 1.60 DLH/unit 54,000 DLHs 42,000 DLHs 60,000 inspections 17,500 inspections Under the revised ABC system, total overhead costs allocated to Sweatshirts will be A. $47,460 B. $201,480 C. $68,460 D. None of these answers are correct