Required Information [The following information apples to the questions displayed below) Tent Master produces Pup tents and Pop-up tents. The company budgets $336,000 of overhead cost and 56,000 direct labor hours. Additional information follows. Per Unit Setting Price Direct Materials Direct Labor Pup tent $ 76 $20 $40 Pop-up tent 71 18 22 Activity Assembly Electricity Materials purchasing Total Bludgeted cost $ 224,000 38,000 74,000 $336,000 Activity Cost Driver Direct labor hours (DH) Machine hours (PH) Purchase orders (PO) Budgeted Activity Usage 56,000 10,000 400 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) 37,000 19,000 Machine hours (M) 3,500 6,500 Purchase orders (PO) 160 240 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) 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 K Rapid Required 2 > Required 1 Required 2 Required 3 Required 4 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. (Round "Activity Rate" and "Overhead per unit to 2 decimal places.) Allocate overhead to Pup tent Activity Usage Activity Rate Allocated Cost Activity Assembly Electricity Materials purchasing Total allocated cost Units produced Overhead cost per unit + Allocate overhead to Pop up tent Activity Usage Activity Rate Allocated Cost Activity Assembly Electricity Materials purchasing Total allocated cost Units produced Overhead cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute product cost per unit for Pup tents and for Pop-up tents. (Round "Activity Rate" and final answers to 2 decimal places.) Per Unit Overhead Product Cost per Unit Pup tent Pop-up tent Direct Direct Labor Materials $ 20.00 $ 40.00 22.00 18.00 Complete this question by entering your answers in the tabs below. 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 Selling Price Product Cost Gross Profit Pup tent $ 76.00 Pop-up tent 71.00
