Tent Master produces two lines of tents sold to outdoor enthusiasts. The tents are cut to specifications in department A. In department B the tents are sewn and folded. The activities, costs, and drivers associated with these two manufacturing processes and its production support activities follow.

Additional production information on the two lines of tents follows.

Required
1. Using a plantwide overhead rate based on direct labor hours, compute the overhead cost that is assigned to each pup tent and each pop- up tent.
2. Using the plantwide overhead rate, determine the total cost per unit for the two products if the direct materials and direct labor cost is $ 25 per pup tent and $ 32 per pop- up tent.
3. If the market price of the pup tent is $ 65 and the market price of the pop- up tent is $ 200, determine the gross profit per unit for each tent. What might management conclude about the pup tent?
4. Using ABC, compute the total cost per unit for each tent if the direct labor and direct materials cost is $ 25 per pup tent and $ 32 per pop-up tent.
5. If the market price is $ 65 per pup tent and $ 200 per pop- up tent, determine the gross profit per unit for each tent. Comment on the results.
6. Would your pricing analysis be improved if the company used, instead of ABC, departmental rates determined using machine hours in Department A and direct labor hours in Department B?Explain.

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Process Activity Overhead Cost DriverQuantity 560 2,300 2.400 DepartmentA Pattern alignment $64,400 hes Cuttung Moving product 50,430 Machine hours 00,800 Moves $215,630 Department B Sewing Inspecting Folding $327,600 Direct labor hours 4.200 600 22,800 24.000 Inspections 47,880 Units $399.480 Design Providing space Materials handling $280,000 Modification order 280 8,600 920,000 Support 51.600 Square feet 184,000 Square yards $515,600 Pup Tent Pop-Up Tent 7,600 units 1,600 m 420 batches 360 inspections 5.300 MH 1.600 DLH Units produced...15,200 units oves Batches.. 140 batches Number of inspections.. 240 inspections Machine hours... Direct labor hours.2,600 DLH Modification orders.... 70 modification orders 210 modification orders Space occupied.. 4.300 square feet Material required... 450,000 square yards 470,000 square yards 7,000 MH 4.300 square feet