Trombly Travel Products $($TTP$)$ manufactures and sells travel bags and accessories. TTP produces backpacks at its West Street plant. The different backpack models are identified by the primary material used: canvas, nylon, or leather. The company uses a plantwide rate based on direct labor$-$hours. The plantwide rate is $$5\mathrm{.}00$ per labor$-$hour. All direct labor at TTP is paid $$25$ per hour. Canvas and nylon backpacks are produced in Department $1.$ Leather backpacks are produced in Department $2.$ The product costs $($per backpack$)$ follow.

Canvas Nylon Leather

Direct materials $ $20\mathrm{.}00$ $ $25\mathrm{.}00$ $ $35\mathrm{.}00$

Direct labor $37\mathrm{.}5050\mathrm{.}0055\mathrm{.}00$

Required:

Compute the total unit cost of each backpack model using the plantwide allocation method.

The machines in Department $1$ are older and almost fully depreciated. The equipment in Department $2$ was recently updated and the process in Department $2$ is more highly automated. At the request of the manager of Department $1,$ a cost analyst at TTP provided the following information on overhead costs, machine$-$hours and direct labor$-$hours for the two departments.

Department $1$ Department $2$

Overhead $ $54,000$ $ $86,000$

Machine$-$hours $15,00020,000$

Labor$-$hours $18,00010,000$

Using labor$-$hours as the department allocation base for Department $1$ and machine$-$hours as the department allocation base for Department $2,$ compute the allocation rate for each.

Compute the unit cost of each model of backpack using the department allocation rates computed in requirement $($b$)($labor$-$hours in Department $1$ and machine$-$hours in Department $2).$