Problem C-2A Pricing analysis with ABC and a plantwide overhead rate A1 P1 P2 Tent Master produces two lines of tents sold to outdoor enthusiasts. The tents are cut to specifications in department A. In department B the tents are sewn and folded. The activities, costs, and drivers as- sociated with these two manufacturing processes and the company's production support activities follow. Overhead Cost Department A Pattern alignment S 64.400 S0430 Mos 00.800 Machine hours 12.300 2,400 Moving product Department B Sewing $327.600 24,000 7880 $399,480 4,200 600 22,800 Direct labor hours 280 $280,000 51,600 84,000 515,600 Modfication orders Square feet Square yards Providing space Materials handling Additional production information on the two lines of tents follows. Pup Tent Pop-up Tent Units produced 7,600 units 1,600 moves 420 batches 15.200 units 800 moves 140 batches 240 inspections 7,000 MH 2.600 DLH Batches Number of inspections.. Machine hours 5.300 MH 1,600 DLH Space occupied 4300 square feet 450,000 square yards 300 square feet 470,000 square yards 1. Using a plantwide overhead rate based on direct labor hours, compute the overhead cost that is as- 2. Using the plantwide overhead rate, determine the total cost per unit for the two products if the direct 3. If the market price of the pup tent is $65 and the market price of the pop-up tent is $200, determine the hech 4) Pup tant $58 46 4. Using ABC. compute the total cost per unit for each tent if the direct labor and direct materials cost is 5. If the market price is $65 per pup tent and $200 per pop-up tent, determine the gross profit per unit for 6. Would your pricing analysis be improved if the company used, instead of ABC. departmental rates signed to each pup tent and each pop-up tent. materials and direct labor cost is $25 per pup tent and $32 per pop-up tent. gross profit per unit for each tent. What might management conclude about the pup tent? S25 per pup tent and S32 per pop-up tent each tent. Comment on the results determined using machine hours in department A and direct labor hours in department B? Explain