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Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS 216,000 units. 24,375 units 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 $116,250 $172,800 $14.00 $1.70 $4.00 $0.80 $7.50 $3.60 $3.90 Activities demanded T-SHIRTS 0.25 DLH/unit 54,000 DLHs 80,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be SWEATSHIRTS 1.6 DLH/unit 39,000DLHS 16,000 inspections OA. $48,750 OB. $116,250 OC. $172,800 OD. None of these answers are correct. $29.00 $ 5.00 $7.20 $3.00 $13.80 $7.00 $6.80 (Do not round interim calculations. Round the final answer to the nearest whole dollar.) +

Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS 216,000 units. 24,375 units 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 $116,250 $172,800 $14.00 $1.70 $4.00 $0.80 $7.50 $3.60 $3.90 Activities demanded T-SHIRTS 0.25 DLH/unit 54,000 DLHs 80,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be SWEATSHIRTS 1.6 DLH/unit 39,000DLHS 16,000 inspections OA. $48,750 OB. $116,250 OC. $172,800 OD. None of these answers are correct. $29.00 $ 5.00 $7.20 $3.00 $13.80 $7.00 $6.80 (Do not round interim calculations. Round the final answer to the nearest whole dollar.) +

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS 24,375 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 $116,250 $172,800 216,000 units $14.00 $1.70 $4.00 $0.80 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 $7.50 $3.60 $3.90 Activities demanded T-SHIRTS 0.25 DLH/unit 54,000 DLHS 80,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be SWEATSHIRTS 1.6 DLH/unit 39,000DLHS 16,000 inspections OA. $48,750 OB. $116,250 OC. $172,800 OD. None of these answers are correct. $13.80 $7.00 $6.80 (Do not round interim calculations. Round the final answer to the nearest whole dollar.) ...
Transcribed Image Text:Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS 24,375 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 $116,250 $172,800 216,000 units $14.00 $1.70 $4.00 $0.80 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 $7.50 $3.60 $3.90 Activities demanded T-SHIRTS 0.25 DLH/unit 54,000 DLHS 80,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be SWEATSHIRTS 1.6 DLH/unit 39,000DLHS 16,000 inspections OA. $48,750 OB. $116,250 OC. $172,800 OD. None of these answers are correct. $13.80 $7.00 $6.80 (Do not round interim calculations. Round the final answer to the nearest whole dollar.) ...
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