Tweedle Jackets make and sell Tweed Jackets, which never go out of style. Tweedle Jackets uses a process costing with steps approach to understand the costs of their jackets. The process has two steps: first, a jacket is made, and second, the elbow patches are sewn on. For this question, we consider the second step of the process, called the Elbow Patch division, for which a completed jacket without elbow patches is transferred in. The Elbow Patch division employs two laborers, Tweedledee and Tweedledum, both of whom are expected to work full time (160 hours per month). Tweedledee is paid $20/hour, and Tweedledum (who is better at sewing on patches) is paid 30$ per hour. Both are paid overtime (at 1.5x) for any hours over 160 worked in a month. The monthly budgeted costs for the Elbow Patch division are as follows: Budgeted Production 400 jackets Tweed Jackets transferred in (400 jackets) $150 / jacket Elbow Patch Material (132 yds total, for 0.33 yd/jacket) $5 / yard…

Lucky Clothing creates and sells t-shirts that can be customized. The cost of sales order processing and shipping is calculated using activity-based costing at Lucky Clothing. The sales order processing activity has a $9 per sales order activity rate, and the shipping activity has a $18 per shipment activity rate. Lucky Clothing sold a total of 25,300 personalized t-shirts, including 4,000 orders and 1,300 shipping. The total activity cost is calculated through: Sales order activity costs = Number of orders * sales order activity rate = 4000*9 = $36,000Shipping Activity costs = Number of shipping * Shipping Activity rate= 1300*18 = $23400Total activity costs = Sales order activity costs + Shipping Activity costsWhile the per-unit sales order processing and shipping activity cost for customizable t-shirts is solved as follows:Per unit sales order processing costs = Sales order processing costs/ Number of t shirts = $36000 + $23400 = $59400 Per unit sales order processing costs = Sales…

Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 22 per direct labor-hour $ 182 per order $ 261 per custom design $ 422 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Model Custom Design 16 2 1 2 0 2 30.50 32.00 $ 1,900 $ 450 $ 2,420 $ 580 The company's direct labor rate is $16 per hour. Required: Using the company's activity-based costing system,…