Tent Pro 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 the company's production support activities follow. Process Activity Department A Pattern alignment Cutting Moving product Overhead Cost Driver $ 64,400 Batches 50,430 Machine hours 100.800 Moves $215,630 Quantity 560 12,300 2,400 Department B Sewing Inspecting Folding $327,600 24,000 47.880 $399,480 Direct labor hours Inspections Units 4,200 600 22,800 Support Design Providing space Materials handling $280,000 51,600 184.000 $515,600 Modification orders Square feet Square yards 280 8,600 920,000 Additional production information on the two lines of tents follows. Pup Tent Pop-up Tent Units produced 15,200 units 7,600 units Moves 800 moves 1,600 moves Batches 140 batches 420 batches Number of inspections 240 inspections 360 inspections Machine hours 7,000 MH 5,300 MH Direct labor hours 2,600 DLH 1,600 DLH Modification orders 70 modification orders 210 modification orders Space occupied 4,300 square feet 4,300 square feet Material required 450,000 square yards 470,000 square yards Required 1. Using a plantwide overhead rate based on direct labor hours, compute the overhead cost that is assigned to each pup tent and each pop-up tent. 2. Using the plantwide overhead rate, determine the total cost per unit for the two products if the direct materials and direct labor cost is $25 per pup tent and $32 per pop-up tent. 3. If the market price of the pup tent is $65 and the market price of the pop-up tent is $200, determine the gross profit per unit for each tent. What might management conclude about the pup tent? 4. Using ABC, compute the total cost per unit for each tent if the direct labor and direct materials cost is $25 per pup tent and $32 per pop-up tent. Check (4) Pup tent, $58.46 per unit cost 5. If the market price is $65 per pup tent and $200 per pop-up tent, determine the gross profit per unit for each tent. Comment on the results. 6. Would your pricing analysis be improved if the company used, instead of ABC, departmental rates determined using machine hours in department A and direct labor hours in department B? Explain