TPD Corporation produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS...
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TPD Corporation produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS T-SHIRTS Production and sales volume 64,000 units 40,000 units Selling price $16.00 $29.00 Direct material $2.50 $5.00 Direct labor $4.30 $7.20 Manufacturing overhead $1.70 $3.00 Gross profit $7.50 $13.80 Selling and administrative Operating profit $4.30 $3.20 $7.00 $6.80 TPD Corporation's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Activity cost Activity-cost driver Supervision $107,520 Direct labor hours (DLH) Inspection $70,200 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.75 DLH/unit 1.20 DLH/unit 48,000 DLHS 48,000 DLHS 40,000 inspections 18,500 inspections What is overhead costs per unit for the Sweatshirts Under the revised ABC system? (Do not round interim calculations. Round the final answer to the nearest cent) $1.58 per unit O$1.20 per unit $1.90 per unit O $1.19 per unit TPD Corporation produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: SWEATSHIRTS T-SHIRTS Production and sales volume 64,000 units 40,000 units Selling price $16.00 $29.00 Direct material $2.50 $5.00 Direct labor $4.30 $7.20 Manufacturing overhead $1.70 $3.00 Gross profit $7.50 $13.80 Selling and administrative Operating profit $4.30 $3.20 $7.00 $6.80 TPD Corporation's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Activity cost Activity-cost driver Supervision $107,520 Direct labor hours (DLH) Inspection $70,200 Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.75 DLH/unit 1.20 DLH/unit 48,000 DLHS 48,000 DLHS 40,000 inspections 18,500 inspections What is overhead costs per unit for the Sweatshirts Under the revised ABC system? (Do not round interim calculations. Round the final answer to the nearest cent) $1.58 per unit O$1.20 per unit $1.90 per unit O $1.19 per unit
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