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Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: Production and sales volume Selling price Direct material Direct labor
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit T-SHIRTS 192,000 units $17.00 $230 $5.00 $220 $ 7.50 $4.20 $3.30 SWEATSHIRTS 37,500 units $29.00 $5.00 $7.20 $ 3.00 $13.80 $7.00 $ 6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision Inspection Activity cost $128,340 $126,400 Activity-cost driver Direct labor hours (DLH) Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.25 DLH/unit 1.20 DLH/unit 48,000 DLHS 45,000 DLHS 60,000 inspections 19,000 inspections Under the revised ABC system, total overhead costs allocated to Sweatshirts will be O $62,100 O $92,500 O $254,740 O None of these answers are correct
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