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Question 10 (15 points) Viking Gear produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: Viking Product Line Profitability Data
Question 10 (15 points) Viking Gear produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: Viking Product Line Profitability Data Viking Gear's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision Activity cost $123,480 Activity-cost driver Direct labor hours (DLH) Inspection $104,800 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 1.50 DLH/unit 36,000 DLHS 0.25 DLH/unit 48,000 DLH 50,000 inspections 15,500 inspections Required: Under the revised ABC system, determine (1) the activity rate for supervision costs and, (2) the total dollar amount of supervision costs allocated to the Sweatshirts product line. Show your work! (Formula: Activity rate Activity cost / Total activity cost driver) =
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