Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 216,000 units 32,000 units Selling price $17.00 $29.00 Direct material $2.20 $5.00 Direct labor $4.80 $7.20 Manufacturing overhead $2.50 $3.00 Gross profit $750 $13.80 Selling and administrative $3.90 $7.00 Operating profit $3.60 $6.80 A. $1.40 per unit B. $1.63 per unit C. $0.36 per unit D. $2.44 per unit Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cott information Activity Activity cost Activity - cost driver Supervision $115,260 Direct inbor hours (DLH) Inspection $65,800 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.25 DL Hunt 15 DLHunt 54,000 DLHS 48,000 DHS 30,000 inspections 17,000 inspections Under the revised ABC system, overhead couts per unit for the Sweatshirts will be (Do not round interim calculations. Round the finanswer to the nearest cont.) OA. $1.40 per unit B. $1.63 per unit OC. $0.36 per unit D. $2.44 per unit Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 216,000 units 32,000 units Selling price $17.00 $29.00 Direct material $2.20 $5.00 Direct labor $4.80 $7.20 Manufacturing overhead $2.50 $3.00 Gross profit $750 $13.80 Selling and administrative $3.90 $7.00 Operating profit $3.60 $6.80 A. $1.40 per unit B. $1.63 per unit C. $0.36 per unit D. $2.44 per unit Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cott information Activity Activity cost Activity - cost driver Supervision $115,260 Direct inbor hours (DLH) Inspection $65,800 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.25 DL Hunt 15 DLHunt 54,000 DLHS 48,000 DHS 30,000 inspections 17,000 inspections Under the revised ABC system, overhead couts per unit for the Sweatshirts will be (Do not round interim calculations. Round the finanswer to the nearest cont.) OA. $1.40 per unit B. $1.63 per unit OC. $0.36 per unit D. $2.44 per unit
