Question
Tent Master produces two lines of tents sold to outdoor enthusiasts. The tents are cut to specifications in department A. In department B the tents
Tent Master produces two lines of tents sold to outdoor enthusiasts. The tents are cut to specifications in department A. In department B the tents are sewn and folded. The activities, costs, and drivers associated with these two manufacturing processes and its production support activities follow. |
Process | Activity | Overhead cost | Driver | Quantity | |||
Department A | Pattern alignment | $ | 56,640 | Batches | 480 | ||
Cutting | 61,200 | Machine hours | 12,000 | ||||
Moving product | 151,200 | Moves | 3,600 | ||||
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$ | 269,040 | ||||||
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Department B | Sewing | $ | 419,840 | Direct labor hours | 5,120 | ||
Inspecting | 12,000 | Inspections | 300 | ||||
Folding | 95,700 | Units | 33,000 | ||||
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$ | 527,540 | ||||||
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Support | Design | $ | 608,000 | Modification orders | 320 | ||
Providing space | 20,400 | Square feet | 10,200 | ||||
Materials handling | 211,600 | Square yards | 920,000 | ||||
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$ | 840,000 | ||||||
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Additional production information on the two lines of tents follows. |
Pup Tent | Pop-Up Tent | ||||||||||||
Units produced | 22,000 | units | 11,000 | units | |||||||||
Moves | 1,200 | moves | 2,400 | moves | |||||||||
Batches | 120 | batches | 360 | batches | |||||||||
Number of inspections | 120 | inspections | 180 | inspections | |||||||||
Machine hours | 7,400 | MH | 4,600 | MH | |||||||||
Direct labor hours | 3,200 | DLH | 1,920 | DLH | |||||||||
Modification orders | 80 | modification orders | 240 | modification orders | |||||||||
Space occupied | 5,100 | square feet | 5,100 | square feet | |||||||||
Material required | 480,000 | square yards | 440,000 | square yards | |||||||||
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