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Tiger Pride produces two product lines T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 204,000 units 37,500 units

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Tiger Pride produces two product lines T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 204,000 units 37,500 units Selling price $15.00 $29.00 Direct material $2.20 $5.00 Direct labor $4.40 $7.20 Manufacturing overhead $0.90 $3.00 Gross profit $7.50 $13.80 Selling and administrative $3.50 $7.00 Operating profit $4.00 $6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information Activity Activity cost Activity - cost driver Supervision $114,240 Direct labor hours (DLH) 3 Inspection $93.600 Inspections O Activities demanded T-SHIRTS SWEATSHIRTS 0 25 DLH/unit 1.2 DLH/unit 51,000 DLHS 45,000 DLHS 60,000 inspections 18,000 inspections in ho Activities demanded T-SHIRTS SWEATSHIRTS 0.25 DLH/unit 1.2 DLH/unit 51,000 DLHS 45,000 DLHS 60,000 inspections 18,000 inspections Under the revised ABC system, the activity - cost driver rate for the supervision activity is O A. $2.54 O B. $1.19 O C. $2.24 OD. $1.20

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