Activities demanded T-SHIRTS SWEATSHIRTS 1.6 DLH/unit 51,000DLH 16,000 inspections 0.75 DLH/unit 48,000 DLHS 30,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be OA. $78,200 OB. $62,730 OC. $121,770 OD. None of these answers are correct CD (Do not round interim calculations Round the final answer to the nearest whole dollar)
Activities demanded T-SHIRTS SWEATSHIRTS 1.6 DLH/unit 51,000DLH 16,000 inspections 0.75 DLH/unit 48,000 DLHS 30,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be OA. $78,200 OB. $62,730 OC. $121,770 OD. None of these answers are correct CD (Do not round interim calculations Round the final answer to the nearest whole dollar)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 21E: Bounce Back Insurance Company carries three major lines of insurance: auto, workers compensation,...
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Question
![Tiger Pride produces two product lines T-shirts and Sweatshirts. Product profitability is analyzed as follows:
T-SHIRTS
SWEATSHIRTS
31,875 units
$29.00
$5.00
$7.20
$3.00
Production and sales volume
Selling price
Direct material
Direct labor
Manufacturing overhead
Gross profit
Selling and administrative
Operating profit
Supervision
Inspection
Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:
Activity
Activity cost
Activity-cost driver
Direct labor hours (DLH)
Inspections
$121,770
$78,200
64,000 units
$20.00
$1.80
$4.90
$5.80
$7.50
$3.60
$3.90
Activities demanded
T-SHIRTS
0.75 DLH/unit
48,000 DLHs
30.000 inspections
$13.80
$7.00
56.80
SWEATSHIRTS
1.6 DLH/unit
51,000DLHs
16,000 inspections](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbce406f3-3dde-41bf-9bc7-4dc15c5c0346%2F856c1a59-542a-4c7f-b05c-7ea7441212ec%2Fwgir36_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tiger Pride produces two product lines T-shirts and Sweatshirts. Product profitability is analyzed as follows:
T-SHIRTS
SWEATSHIRTS
31,875 units
$29.00
$5.00
$7.20
$3.00
Production and sales volume
Selling price
Direct material
Direct labor
Manufacturing overhead
Gross profit
Selling and administrative
Operating profit
Supervision
Inspection
Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:
Activity
Activity cost
Activity-cost driver
Direct labor hours (DLH)
Inspections
$121,770
$78,200
64,000 units
$20.00
$1.80
$4.90
$5.80
$7.50
$3.60
$3.90
Activities demanded
T-SHIRTS
0.75 DLH/unit
48,000 DLHs
30.000 inspections
$13.80
$7.00
56.80
SWEATSHIRTS
1.6 DLH/unit
51,000DLHs
16,000 inspections
![Activities demanded
T-SHIRTS
0.75 DLH/unit
48,000 DLHS
30.000 inspections
Under the revised ABC system, supervision costs allocated to Sweatshirts will be
SWEATSHIRTS
1.6 DLH/unit
51,000DLH
16,000 inspections
OA. $78,200
OB. $62,730
OC. $121,770
OD. None of these answers are correct
S
(Do not round interim calculations Round the final answer to the nearest whole dollar)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbce406f3-3dde-41bf-9bc7-4dc15c5c0346%2F856c1a59-542a-4c7f-b05c-7ea7441212ec%2Fyddk8be_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Activities demanded
T-SHIRTS
0.75 DLH/unit
48,000 DLHS
30.000 inspections
Under the revised ABC system, supervision costs allocated to Sweatshirts will be
SWEATSHIRTS
1.6 DLH/unit
51,000DLH
16,000 inspections
OA. $78,200
OB. $62,730
OC. $121,770
OD. None of these answers are correct
S
(Do not round interim calculations Round the final answer to the nearest whole dollar)
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