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Tent Master produces Pup tents and Pop-up tents. The company budgets $312,000 of overhead cost and 52,000 direct labor hours. Additional information follows.

Per Unit	Selling Price	Direct Materials	Direct Labor
Pup tent	$ 82	$ 23	$ 44
Pop-up tent	77	27	32

Activity	Budgeted Cost	Activity Cost Driver	Budgeted Activity Usage
Assembly	$ 208,000	Direct labor hours (DLH)	52,000
Electricity	34,000	Machine hours (MH)	10,000
Materials purchasing	70,000	Purchase orders (PO)	400
Total	$ 312,000

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 8,000 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
	Pup tents	Pop-up tents
Direct labor hours(DLH)	35,000	17,000
Machine hours (MH)	4,000	6,000
Purchase orders(PO)	160	240

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).