Question
Tent Master produces Pup tents and Pop-up tents. The company budgets $276,000 of overhead costs and 46,000 direct labor hours for this year. Additional information
Tent Master produces Pup tents and Pop-up tents. The company budgets $276,000 of overhead costs and 46,000 direct labor hours for this year. Additional information follows.
Per Unit | Selling Price | Direct Materials | Direct Labor |
---|---|---|---|
Pup tent | $ 90 | $ 24 | $ 51 |
Pop-up tent | 85 | 29 | 32 |
Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead based on 46,000 direct labor hours. 2. Pup tents require 4 direct labor hours per unit and Pop-up tents require 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 selling price per unit minus the product cost per unit.
Compute a single plantwide overhead rate assuming the company allocates overhead based on 46,000 direct labor hours. Complete this question by entering your answers in the tabs below. Pup tents require 4 direct labor hours per unit and Pop-up tents require 3 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 selling price per unit minus the product cost per unit. (Enter any product costs in excess of selling prices as negative values.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started