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Required Information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below] Tent Master produces Pup
Required Information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below] Tent Master produces Pup tents and Pop-up tents. The company budgets $301,000 of overhead costs and 43,000 direct labor hours for this year. Additional information follows. Per Unit Pup tent Pop-up tent Selling Price $ 80 75 Direct Materials $ 21 22 Direct Labor $ 46 28 Problem C-3A (Algo) Pricing analysis with activity-based costing LO P2 Activity Budgeted Cost Assembly $ 215,000 Electricity 25,000 Materials purchasing 61,000 total $301,000 Required: Activity Cost Driver Direct labor hours Machine hours Purchase orders Budgeted Activity Usage 43,000 10,000 500 1. Compute an activity rate for each activity using activity-based costing. 2. The company used the activities below to produce 10,000 Pup tents and 5,000 Pop-up tents. Allocate overhead costs to Pup tents and to Pop-up tents and compute overhead cost per unit for each Activity Cost Driver Activity Usage Pup tents 30,500 3,600 200 Pop-up tents 12,500 Direct labor hours Machine hours Purchase orders 6,400 300 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the selling price per unit minus the product cost per unit
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