MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:

T-SHIRTS SWEATSHIRTS

Production and sales volume 192,000 units 31,875 units

Selling price $17.00 $29.00

Direct material $1.50 $ 5.00

Direct labor $4.30 $ 7.20

Manufacturing overhead $3.70 $ 3.00

Gross profit $ 7.50 $13.80

Selling and administrative $4.00 $ 7.00

Operating profit $3.50 $ 6.80

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	$110,880	Direct labor hours (DLH)
Inspection	$102,700	Inspections

Activities demanded
T-SHIRTS	SWEATSHIRTS
0.25 DLH/unit	1.60 DLH/unit
48,000 DLHs	51,000 DLHs
60,000 inspections	19,000 inspections

Under the revised ABC system, total overhead costs allocated to Sweatshirts will be?