Question
Tent Master produces Pup tents and Pop-up tents. The company budgets $372,000 of overhead cost and 62,000 direct labor hours. Additional information follows. Per Unit
Tent Master produces Pup tents and Pop-up tents. The company budgets $372,000 of overhead cost and 62,000 direct labor hours. Additional information follows.
Per Unit | Selling Price | Direct Materials | Direct Labor |
---|---|---|---|
Pup tent | $ 88 | $ 23 | $ 45 |
Pop-up tent | 83 | 28 | 32 |
Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 62,000 direct labor hours. 2. Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 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. Required 1 Required 2 Required 3 Required 4 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 62,000 direct labor hou Numerator 0 Denominator Required 1 Required 2 Required 3 Required 4 Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overh cost per unit for each product. Plantwide Overhead Rate Direct Labor Hours per Unit Overhead Cost per Unit per unit Pup tent Pop-up tent per unitStep by Step Solution
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