Question
Required information Use the following information for the Problems below. (Algo) Skip to question [The following information applies to the questions displayed below.] Tent Master
Required information
Use the following information for the Problems below. (Algo)
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[The following information applies to the questions displayed below.] Tent Master produces Pup tents and Pop-up tents. The company budgets $264,000 of overhead cost and 44,000 direct labor hours. Additional information follows.
Per Unit | Selling Price | Direct Materials | Direct Labor |
---|---|---|---|
Pup tent | $ 90 | $ 23 | $ 53 |
Pop-up tent | 85 | 32 | 38 |
Problem 17-2A (Algo) Using plantwide overhead rate to allocate overhead cost, and compute overhead cost per unit and gross profit per unit LO P1
Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 44,000 direct labor hours. 2. Pup tents use 4 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. 3. Compute the product cost per unit for each product. 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. Complete this question by entering your answers in the tabs below. Pup tents use 4 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. Complete this question by entering your answers in the tabs below. Compute the product cost per unit for each product. Complete this question by entering your answers in the tabs below. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). (Enter any product costs in excess of selling prices as negative values.)
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