Tent Master produces two lines of tents sold to outdoorenthusiasts. 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 manufacturingprocesses and the company’s production support activitiesfollow.
Process | Activity | Overhead cost | Driver | Quantity | |
Department A | Pattern alignment | | $ | 117,000 | | Batches | 1,000 | |
| Cutting | | | 60,280 | | Machine hours | 13,700 | |
| Moving product | | | 150,000 | | Moves | 3,000 | |
| | | $ | 327,280 | | | | |
Department B | Sewing | | $ | 425,600 | | Direct labor hours | 6,080 | |
| Inspecting | | | 52,500 | | Inspections | 750 | |
| Folding | | | 65,340 | | Units | 29,700 | |
| | | $ | 543,440 | | | | |
Support | Design | | $ | 612,000 | | Modification orders | 360 | |
| Providing space | | | 72,800 | | Square feet | 10,400 | |
| Materials handling | | | 334,400 | | Square yards | 880,000 | |
| | | $ | 1,019,200 | | | | |
|
Additional production information on the two lines of tentsfollows.
| Pup Tent | Pop-Up Tent |
Units produced | 19,800 | units | 9,900 | units |
Moves | 1,000 | moves | 2,000 | moves |
Batches | 250 | batches | 750 | batches |
Number of inspections | 300 | inspections | 450 | inspections |
Machine hours | 7,600 | MH | 6,100 | MH |
Direct labor hours | 3,800 | DLH | 2,280 | DLH |
Modification orders | 90 | modification orders | 270 | modification orders |
Space occupied | 5,200 | square feet | 5,200 | square feet |
Material required | 510,000 | square yards | 370,000 | square yards |
|
1. Using a plantwide overhead rate based ondirect labor hours, compute the overhead cost that is assigned toeach pup tent and each pop-up tent. (Round yourintermediate calculations and final answers to 2 decimalplaces.)
2. Using the plantwide overhead rate, determinethe total cost per unit for the two products if the directmaterials and direct labor cost is $19 per pup tent and $22 perpop-up tent. (Round your intermediate calculations andanswers to 2 decimal places.)
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[The following information applies to the questionsdisplayed below.]
Tent Master produces two lines of tents sold to outdoorenthusiasts. 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 manufacturingprocesses and the company’s production support activitiesfollow.
Process | Activity | Overhead cost | Driver | Quantity | |
Department A | Pattern alignment | | $ | 117,000 | | Batches | 1,000 | |
| Cutting | | | 60,280 | | Machine hours | 13,700 | |
| Moving product | | | 150,000 | | Moves | 3,000 | |
| | | $ | 327,280 | | | | |
Department B | Sewing | | $ | 425,600 | | Direct labor hours | 6,080 | |
| Inspecting | | | 52,500 | | Inspections | 750 | |
| Folding | | | 65,340 | | Units | 29,700 | |
| | | $ | 543,440 | | | | |
Support | Design | | $ | 612,000 | | Modification orders | 360 | |
| Providing space | | | 72,800 | | Square feet | 10,400 | |
| Materials handling | | | 334,400 | | Square yards | 880,000 | |
| | | $ | 1,019,200 | | | | |
|
Additional production information on the two lines of tentsfollows.
| Pup Tent | Pop-Up Tent |
Units produced | 19,800 | units | 9,900 | units |
Moves | 1,000 | moves | 2,000 | moves |
Batches | 250 | batches | 750 | batches |
Number of inspections | 300 | inspections | 450 | inspections |
Machine hours | 7,600 | MH | 6,100 | MH |
Direct labor hours | 3,800 | DLH | 2,280 | DLH |
Modification orders | 90 | modification orders | 270 | modification orders |
Space occupied | 5,200 | square feet | 5,200 | square feet |
Material required | 510,000 | square yards | 370,000 | square yards |
|
Complete the below table. (Round your intermediatecalculations and answers to 2 decimal places.)
4. Using ABC, compute the total cost per unitfor each tent if the direct labor and direct materials cost is $19per pup tent and $22 per pop-up tent. (Round yourintermediate calculations and final answers to 2 decimalplaces.)
5. Assume if the market price is $75 per puptent and $150 per pop-up tent, determine the gross profit / lossper unit for each tent. (Round your intermediatecalculations and answers to 2 decimal places.)