Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

checking work #11, 4 small parts Tent Master produces Pup tents and Pop-up tents. The company budgets $276,000 of overhead cost and 46,000 direct labor

checking work #11, 4 small parts
image text in transcribed
image text in transcribed
image text in transcribed
Tent Master produces Pup tents and Pop-up tents. The company budgets $276,000 of overhead cost and 46,000 direct labor hours. Additional information follows Selling Price Direct Materials Direct Labor Pup tent $ 90 Pop-up tent Per Unit 85 $ 24 29 $51 32 Activity Assembly Electricity Materials purchasing Total Budgeted Cost $ 184,000 28,000 64,000 5 276,000 Activity Cost Driver Direct labor hours (DLH) Machine hours (1) Purchase orders (PO) Budgeted Activity Usage 46,000 10,000 see 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 5,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product Activity Usage Activity Cost Driver Pup tents Pop-up tents Direct labor hours (DLH) 32,000 14,896 Machine hours (PH) 3,500 Purchase orders(PO) 200 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). 6,500 300 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute an activity rate for each activity using activity-based costing (Round "Activity Rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Activity Rate Assembly Electricity Materials purchasing R1 Required 2 > the Houts and more Com De 06 As 1 1 ca > > Required 1 Required 2 Required 3 Required 4 For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). (Round "Activity Rate" and final answers to 2 decimal places. Enter any product costs in excess of selling prices as negative values.) Per Unit Product Cost Gross Profit Pup tent Pop-up tent Selling Price $ 90.00 85.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

3rd Edition

0070967601, 978-0070967601

More Books

Students also viewed these Accounting questions

Question

=+a. Does it flow? (Can anyone read it out loud without stumbling?)

Answered: 1 week ago

Question

=+e. Does it use simple language, not technical jargon?

Answered: 1 week ago