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Required Information [The following Information applies to the questions displayed below.] Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of
Required Information [The following Information applies to the questions displayed below.] Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and 42,000 direct labor hours. Additional information follows. Per Unit Selling Price Direct Materials Direct Labor Pup tent $78 $20 $45 Pop-up tent 73 25 30 Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly Electricity Materials purchasing Total $ 168,000 24,888 Direct labor hours (DLH) Machine hours (MH) 42,000 10,000 60,000 $252,000 Purchase orders (PO) 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 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product. Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Activity Usage Pup tents 30,908 Pop-up tents 12,000 4,880 6,008 158 258
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