FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
expand button
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 >
expand button
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
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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
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