Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Walter Harrison, Charles Horngren, William Thomas

10th edition

133796833, 133427536, 9780133796834, 978-0133427530

More Books

Students also viewed these Accounting questions

Question

Draw a schematic diagram of I.C. engines and name the parts.

Answered: 1 week ago