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 Activity Assembly Electricity Materials purchasing Total Selling Price Direct Materials $ 78 73 Budgeted Cost $ 168,000 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) 24,000 60,000 $ 252,000 $ 20 25 Pup tents 30,000 4,000 150 Direct Labor $ 45 30 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Required: 1. Compute an activity rate for each activity using activity-based costing. 2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product. Activity Usage Budgeted Activity Usage 42,000 10,000 400 Pop-up tents 12,000 6,000 250 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
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 Activity Assembly Electricity Materials purchasing Total Selling Price Direct Materials $ 78 73 Budgeted Cost $ 168,000 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) 24,000 60,000 $ 252,000 $ 20 25 Pup tents 30,000 4,000 150 Direct Labor $ 45 30 Activity Cost Driver Direct labor hours (DLH) Machine hours (MH) Purchase orders (PO) Required: 1. Compute an activity rate for each activity using activity-based costing. 2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to Pop-up tents and compute overhead cost per unit for each product. Activity Usage Budgeted Activity Usage 42,000 10,000 400 Pop-up tents 12,000 6,000 250 3. Compute product cost per unit for Pup tents and for Pop-up tents. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
Activity
Assembly
Electricity
Materials purchasing
Total
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Required 1
Selling Price Direct Materials
$ 20
25
Activity
Required 2
Assembly
Electricity
Materials purchasing
Total allocated cost
Units produced
Overhead cost per unit
Activity
$78
73
Required:
1. Compute an activity rate for each activity using activity-based costing.
2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to
Pop-up tents and compute overhead cost per unit for each product.
Budgeted Cost
$ 168,000
Assembly
Electricity
Materials purchasing
Total allocated cost
Units produced
Overhead cost per unit
24,000
60,000
$ 252,000
Pup tents
30,000
4,000
150
3. Compute product cost per unit for Pup tents and for Pop-up tents.
4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
Required information
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Activity Usage
Required 3
Direct Labor
$ 45
30
Required 4
The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to
Pop-up tents and compute overhead cost per unit for each product. (Round "Activity Rate" and "Overhead per unit" to 2 decimal
places.)
Pop-up tents
12,000
6,000
250
Activity Usage
Allocate overhead to Pup tent
Activity Usage
Budgeted
Activity Usage
Allocate overhead to Pop-up tent
< Required 1
42,000
10,000
400
Rate
Activity Rate
Required 3 >
Allocated Cost
Allocated Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3995f9f-fece-4aba-9bec-7f0200bb676d%2F44c16e09-4f8b-400e-8a6c-cca476a3ef7d%2Fknpognk_processed.png&w=3840&q=75)
Transcribed Image Text: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
Activity
Assembly
Electricity
Materials purchasing
Total
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Required 1
Selling Price Direct Materials
$ 20
25
Activity
Required 2
Assembly
Electricity
Materials purchasing
Total allocated cost
Units produced
Overhead cost per unit
Activity
$78
73
Required:
1. Compute an activity rate for each activity using activity-based costing.
2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to
Pop-up tents and compute overhead cost per unit for each product.
Budgeted Cost
$ 168,000
Assembly
Electricity
Materials purchasing
Total allocated cost
Units produced
Overhead cost per unit
24,000
60,000
$ 252,000
Pup tents
30,000
4,000
150
3. Compute product cost per unit for Pup tents and for Pop-up tents.
4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
Required information
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Activity Usage
Required 3
Direct Labor
$ 45
30
Required 4
The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to
Pop-up tents and compute overhead cost per unit for each product. (Round "Activity Rate" and "Overhead per unit" to 2 decimal
places.)
Pop-up tents
12,000
6,000
250
Activity Usage
Allocate overhead to Pup tent
Activity Usage
Budgeted
Activity Usage
Allocate overhead to Pop-up tent
< Required 1
42,000
10,000
400
Rate
Activity Rate
Required 3 >
Allocated Cost
Allocated Cost
![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
Activity
Assembly
Electricity
Materials purchasing
Total
Selling Price Direct Materials
$ 20
25
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Required 1
$78
73
Budgeted Cost
$ 168,000
Required 2
24,000
60,000
$ 252,000
Assembly
Electricity
Materials purchasing
Required information
2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to
Pop-up tents and compute overhead cost per unit for each product.
Pup tents
30,000
4,000
150
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Activity Usage
Complete this question by entering your answers in the tabs below.
Required 3
Direct Labor
$ 45
30
3. Compute product cost per unit for Pup tents and for Pop-up tents.
4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
Pop-up tents
12,000
6,000
250
Required 4
Budgeted
Activity Usage
42,000
10,000
400
< Required 1
Compute an activity rate for each activity using activity-based costing. (Round "Activity Rate" to 2 decimal places.)
Budgeted Cost
Budgeted Activity Usage
Activity Rate
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3995f9f-fece-4aba-9bec-7f0200bb676d%2F44c16e09-4f8b-400e-8a6c-cca476a3ef7d%2Ffquh9po_processed.png&w=3840&q=75)
Transcribed Image Text: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
Activity
Assembly
Electricity
Materials purchasing
Total
Selling Price Direct Materials
$ 20
25
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Required 1
$78
73
Budgeted Cost
$ 168,000
Required 2
24,000
60,000
$ 252,000
Assembly
Electricity
Materials purchasing
Required information
2. The following actual activity usage produced 10,000 Pup tents and 6,000 Pop-up tents. Allocate overhead cost to Pup tents and to
Pop-up tents and compute overhead cost per unit for each product.
Pup tents
30,000
4,000
150
Activity Cost Driver
Direct labor hours (DLH)
Machine hours (MH)
Purchase orders (PO)
Activity Usage
Complete this question by entering your answers in the tabs below.
Required 3
Direct Labor
$ 45
30
3. Compute product cost per unit for Pup tents and for Pop-up tents.
4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).
Pop-up tents
12,000
6,000
250
Required 4
Budgeted
Activity Usage
42,000
10,000
400
< Required 1
Compute an activity rate for each activity using activity-based costing. (Round "Activity Rate" to 2 decimal places.)
Budgeted Cost
Budgeted Activity Usage
Activity Rate
Required 2 >
Expert Solution
Step 1
Note: As per our guidelines, we will solve the first three subparts for you.
1.
| Activity | Budgeted Cost | Budgeted Activity Usage | Activity Rate | ||
| Assembly | $168,000 | 42,000 | DLH | $4.00 | DLH |
| Electricity | $24,000 | 10,000 | MH | $2.40 | MH |
| Materials purchasing | $60,000 | 400 | PO | $150.00 | PO |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education