Tent Master produces Pup tents and Pop-up tents. The company budgets $288,000 of overhead cost and 48,000 direct labor hours. Additional information follows. Selling Price Direct Materials Direct Labor $ 84 $ 22 79 23 Budgeted Cost $ 192,000 Per Unit Pup tent Pop-up tent Activity Assembly Electricity 30,000 Materials purchasing 66,000 Total $ 288,000 Activity Cost Driver Pup tents Direct labor hours(DLH) Machine hours (MH) Purchase orders(PO) Required: 1. Compute an activity rate for each activity using activity-based costing. 2. The following actual activity usage produced 10,000 Pup tents and 5,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product. Activity Usage Pop-up tents 33,000 3,500 $ 47 29 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) 150 15,000 6,500 Budgeted Activity Usage 48,000 10,000 500 350 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).

Tent Master produces Pup tents and Pop-up tents. The company budgets $288,000 of overhead cost and 48,000 direct labor hours. Additional information follows. Selling Price Direct Materials Direct Labor $ 84 $ 22 79 23 Budgeted Cost $ 192,000 Per Unit Pup tent Pop-up tent Activity Assembly Electricity 30,000 Materials purchasing 66,000 Total $ 288,000 Activity Cost Driver Pup tents Direct labor hours(DLH) Machine hours (MH) Purchase orders(PO) Required: 1. Compute an activity rate for each activity using activity-based costing. 2. The following actual activity usage produced 10,000 Pup tents and 5,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product. Activity Usage Pop-up tents 33,000 3,500 $ 47 29 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) 150 15,000 6,500 Budgeted Activity Usage 48,000 10,000 500 350 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).

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Description: Please Solution with explanation And do not give solution in images format Tent Master produces Pup tents and Pop-up tents. The company budgets $288,000 of overhead cost and48,000 direct labor hours. Additional information follows.Direct Materials

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...

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