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both pictures are oart of the same question/information. how did they solve the activity-cost driver rate to be 1.24 Tiger Pride produces two product lines:

both pictures are oart of the same question/information. how did they solve the activity-cost driver rate to be 1.24 image text in transcribed
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Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 60,000 units 42,500 units Selling price $19.00 $29.00 Direct material $1.60 $5.00 Direct labor $4.50 $7.20 Manufacturing overhead $5.40 $3.00 Gross profit $7.50 $13.80 Selling and administrative $3.90 $7.00 Operating profit $3.60 $6.80 CA $2.33 *B. $1.24 XC. $2.65 D. $1.80 Desde Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Activity cost Activity - cost driver Supervision $119,040 Direct labor hours (DLH) Inspection $88,200 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.75 DLH/unit 12 DLH/unit 45,000 DLHS 51,000 DLHS 30,000 inspections 19,000 inspections Under the revised ABC system, the activity - cost driver rate for the supervision activity is A $2.33 B $1.24 XC 52.65 D. $1.80

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