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Required information

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Tent Master produces Pup tents and Pop$-$up tents. The company budgets $$315,000$ of overhead cost and

$45,000$ direct labor hours. Additional information follows.

Required:

Compute a single plantwide overhead rate assuming the company allocates overhead cost based on $45,000$ direct labor

hours.

Pup tents use $3$ direct labor hours $($DLH$)$ per unit and Pop$-$up tents use $2$ direct labor hours per unit. Compute the

overhead cost per unit for each product.

Compute the product cost per unit for each product.

For each product, compute the gross profit per unit $($selling price per unit minus the product cost per unit$).$