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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
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
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