Problem C-2A required

5. Compare the overfhead costs per unit computed in rench more accurately assigns overhead costs? cut to 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 ABCadiin department A. In department B the tents are sewn and folded. The activities, cost sociated with these two manufacturing processes and the company's production support acti Driver Overhead Cost $ 64.400 Activity Pattern alignment Moving product Batches 560 Department A Machine hours 12,300 430 50.4 00800 Moves 327,600 Direct labor hours4.200 600 Department B Sewing 24,000 47.880 5399,480 Inspections Units $280000 Modication onders Design Providing space 8600 920.000 51,600 Square feet handing 184,000 Spare yards $515.600 Additional production information on the two lines of tents follows. Pup Tent Pop-up Tent Units produced 15,200 units 800 moves 140 batches 240 inspections L600 moves 420 batches 360 inspections 5,300 MH 1,600 DLH 210 modification orders 4.300 square feet Batches Number of inspections.. Machine hours Direct labor hours Modfication onders... Space occupied Material required 7.000 MH 2,600 DLH 70 modification orders 4.300 square feet quare yards 470,000 square yards 1. Using a plantwide overhead rate based on direct labor hours. 2. Using the plantwide owerfhead rate, determine the total cost per unit for the two prodacts if the direst 3. If the market price of the pup tent is $65 and the market price of the pop-up tent is 4. 5. If the market price is 565 per pup tent and $200 per pop-up tent, determine the gross prolint 6. Would your pricing analysis be improved if the company used, instead of ABC compute the overhead cost that is as- 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. the $200, determine Check 4i) Pup tent, $58.46 per unit cost gross profit per unit for each tent. What might management conclude about the pup tent Using ABC, compute the total cost per unit for each tent if the direct labor and direct materials c $25 per pup tent and $32 per pop-up tent each tent. Comment on the results. determined using machine hours in department A and direct labor hours in department