Production and sales volume Selling price ity is lyzed as follows: Direct material Direct labour Manufacturing overhead Gross profit Selling and administrative Operating profit a. b. C. d. Activity Supervision Inspection T-SHIRTS 60,000 units £16.00 Lion Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity cost £100,920 £124,000 £ 2.00 £4.50 £ 2.00 £ 7.50 £4.00 £ 3.50 T-SHIRTS 0.75 DLH/unit 45,000 DLHS 60,000 inspections SWEATSHIRTS 35,000 units £29.00 Activities demanded £5.00 £7.20 £3.00 £13.80 £ 7.00 £ 6.80 Activity-cost driver Direct labour hours (DLH) Inspections SWEATSHIRTS 1.2 DLH/unit 42,000 DLHS 17,500 inspections Under the revised ABC system, total overhead costs allocated to Sweatshirts will be £ 48,720. £ 76,720. £224,920. none of the above.
Production and sales volume Selling price ity is lyzed as follows: Direct material Direct labour Manufacturing overhead Gross profit Selling and administrative Operating profit a. b. C. d. Activity Supervision Inspection T-SHIRTS 60,000 units £16.00 Lion Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity cost £100,920 £124,000 £ 2.00 £4.50 £ 2.00 £ 7.50 £4.00 £ 3.50 T-SHIRTS 0.75 DLH/unit 45,000 DLHS 60,000 inspections SWEATSHIRTS 35,000 units £29.00 Activities demanded £5.00 £7.20 £3.00 £13.80 £ 7.00 £ 6.80 Activity-cost driver Direct labour hours (DLH) Inspections SWEATSHIRTS 1.2 DLH/unit 42,000 DLHS 17,500 inspections Under the revised ABC system, total overhead costs allocated to Sweatshirts will be £ 48,720. £ 76,720. £224,920. none of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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