Required information [The following information applies to the questions displayed below.] Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and 42,000 direct labor hours. Additional information follows. Per Unit Pup tent Pop-up tent Selling Price Direct Materials $ 20 25 $78 73 Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 42,000 direct labor hours. 2. Pup tents use 3 direct labor hours (DLH) per unit and Pop-up tents use 2 direct labor hours per unit. Compute the overhead cost per unit for each product. 3. Compute the product cost per unit for each product. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit). Required 1 Required 2 Direct Labor $45 30 Complete this question by entering your answers in the tabs below. Required 3 Required 4 Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 42,000 direct labor hours. Numerator Denominator =
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Product costs are the costs that are incurred which are related to the product i.e, raw material cost, cost of processing, labor cost, and any overheads (which include manufacturing overheads such as rent, electricity, depreciation of plant, etc). Such costs are the cost that is necessary to produce or manufacture the given product.
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