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 Pup tent Pop-up tent Selling Price Direct Materials Direct Labor $ 78 73 $ 20 25 $ 45 30 Problem 17-3A (Static) Using activity-based costing to allocate overhead cost, and compute overhead cost per unit and gross profit per unit LO P3 Activity Assembly Electricity Budgeted Cost $ 168,000 Materials purchasing Total 24,000 60,000 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Budgeted Activity Usage 42,000 10,000 400 $ 252,000 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 Activity Usage Direct labor hours (DLH) Pup tents 30,000 Pop-up tents 12,000 Machine hours (MH) Purchase orders (PO) 4,000 150 6,000 250 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). < Prev 1 of 1 Next >