Tiger Pride produces two product lines T-shirts and Sweatshirts. Product profitability is analyzed as follows:T-SHIRTSSWEATSHIRTS31,875 units$29.00$5.00$7.20$3.00Production and sales volumeSelling priceDirect materialDirect laborManufacturing overheadGross profitSelling and administrativeOperating profitSupervisionInspectionTiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:ActivityActivity costActivity-cost driverDirect labor hours (DLH)Inspections$121,770$78,20064,000 units$20.00$1.80$4.90$5.80$7.50$3.60$3.90Activities demandedT-SHIRTS0.75 DLH/unit48,000 DLHs30.000 inspections$13.80$7.0056.80SWEATSHIRTS1.6 DLH/unit51,000DLHs16,000 inspections Activities demandedT-SHIRTS0.75 DLH/unit48,000 DLHS30.000 inspectionsUnder the revised ABC system, supervision costs allocated to Sweatshirts will beSWEATSHIRTS1.6 DLH/unit51,000DLH16,000 inspectionsOA. $78,200OB. $62,730OC. $121,770OD. None of these answers are correctS(Do not round interim calculations Round the final answer to the nearest whole dollar)

Activity Based Costing:It is a method of costing which is basically a two stage procedure.This…

Activities demanded T-SHIRTS SWEATSHIRTS 1.6 DLH/unit 51,000DLH 16,000 inspections 0.75 DLH/unit 48,000 DLHS 30,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be OA. $78,200 OB. $62,730 OC. $121,770 OD. None of these answers are correct CD (Do not round interim calculations Round the final answer to the nearest whole dollar)

Activities demanded T-SHIRTS SWEATSHIRTS 1.6 DLH/unit 51,000DLH 16,000 inspections 0.75 DLH/unit 48,000 DLHS 30,000 inspections Under the revised ABC system, supervision costs allocated to Sweatshirts will be OA. $78,200 OB. $62,730 OC. $121,770 OD. None of these answers are correct CD (Do not round interim calculations Round the final answer to the nearest whole dollar)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 21E: Bounce Back Insurance Company carries three major lines of insurance: auto, workers compensation,...

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