Tent Master produces two lines of tents sold to outdoor enthusiasts. The tents are cut to...

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Accounting

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.

ProcessActivityOverhead costDriverQuantity
Department APattern alignment$117,000Batches1,000
Cutting60,280Machine hours13,700
Moving product150,000Moves3,000
$327,280
Department BSewing$425,600Direct labor hours6,080
Inspecting52,500Inspections750
Folding65,340Units29,700
$543,440
SupportDesign$612,000Modification orders360
Providing space72,800Square feet10,400
Materials handling334,400Square yards880,000
$1,019,200

Additional production information on the two lines of tentsfollows.

Pup TentPop-Up Tent
Units produced19,800units9,900units
Moves1,000moves2,000moves
Batches250batches750batches
Number of inspections300inspections450inspections
Machine hours7,600MH6,100MH
Direct labor hours3,800DLH2,280DLH
Modification orders90modification orders270modification orders
Space occupied5,200square feet5,200square feet
Material required510,000square yards370,000square 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.

ProcessActivityOverhead costDriverQuantity
Department APattern alignment$117,000Batches1,000
Cutting60,280Machine hours13,700
Moving product150,000Moves3,000
$327,280
Department BSewing$425,600Direct labor hours6,080
Inspecting52,500Inspections750
Folding65,340Units29,700
$543,440
SupportDesign$612,000Modification orders360
Providing space72,800Square feet10,400
Materials handling334,400Square yards880,000
$1,019,200

Additional production information on the two lines of tentsfollows.

Pup TentPop-Up Tent
Units produced19,800units9,900units
Moves1,000moves2,000moves
Batches250batches750batches
Number of inspections300inspections450inspections
Machine hours7,600MH6,100MH
Direct labor hours3,800DLH2,280DLH
Modification orders90modification orders270modification orders
Space occupied5,200square feet5,200square feet
Material required510,000square yards370,000square 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.)

Answer & Explanation Solved by verified expert
3.7 Ratings (542 Votes)
1Plantwide overhead rate per direct labor hour Total costTotal direct labor hours 32728054344010192006080 31084 per labor hour Overhead Driver Rate Total Cost Units OH Cost per Unit Pup Tent 3800 31084 1181192 19800 5966 Pop up Tent 2280 31084 708715 9900 7159 2 Pup tent Pop Up tent Material and Labor    See Answer
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