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Rasta Love Corporation produces two lines of tents sold to outdoor enthusiasts. The tents are cut to specifications in department A. In department B the tents are sewn and folded. The activities, costs, and drivers associated with these two manufacturing processes and its production support activities follow:

Process Activity Overhead cost Driver Quantity

Department A

Pattern alignment- $ 64,400 Batches- 560

Cutting- 50,430 Machine hours- 12,300

Moving product- 100,800 Moves- 2,400

$ 215,630

Department B

Sewing- $ 327,600 Direct labor hours- 4,200

Inspecting- 24,000 Inspections- 600

Folding- 47,880 Units- 22,800

$ 399,480

Support

Design- $ 280,000 Modification orders 280

Providing space -51,600 Square feet 8,600

Materials handling- 184,000 Square yards 920,000

$ 515,600

Additional production information on the two lines of tents follows:

Pup Tent Pop-Up Tent

Units produced 15,200 units 7,600 units

Moves 800 moves 1,600 moves

Batches 140 batches 420 batches

Number of inspections 240 inspections 360 inspections

Machine hours 7,000 MH 5,300 MH

Direct labor hours 2,600 DLH 1,600 DLH

Modification orders 70 modification orders 210 modification orders

Space occupied 4,300 square feet 4,300 square feet

Material required 450,000 square yards 470,000 square yards

REQUIREMENT 1:

Using a plantwide overhead rate based on direct labor hours, compute the overhead cost that is assigned to each pup tent and each pop-up tent. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

REQUIREMENT 2:

Using the plantwide overhead rate, determine the total cost per unit for the two products if the direct materials and direct labor cost is $25 per pup tent and $32 per pop-up tent. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

REQUIREMENT 3:

If the market price of the pup tent is $65 and the market price of the pop-up tent is $200, determine the gross profit / loss per unit for each tent. (Round your intermediate and final answers to 2 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

REQUIREMENT 4:

Using ABC, compute the total cost per unit for each tent if the direct labor and direct materials cost is $25 per pup tent and $32 per pop-up tent. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

REQUIREMENT 5:

If the market price is $65 per pup tent and $200 per pop-up tent, determine the gross profit / loss per unit for each tent. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

1 Answer

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    Lv 6
    1 decade ago
    Favorite Answer

    This is way too much of a complex assignment for one Yahoo question. If you break this down into several parts, I'll try to help with some of it.

    • DocHoliday7 years agoReport

      another fool who post nothing but excuses. look at the url, see how it says, 'answers.yahoo.com/question.....' operative there is, answer, you are an epic fail

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