1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pshichka [43]
2 years ago
10

Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overhead cost

per unit for each product.
Business
1 answer:
lora16 [44]2 years ago
4 0

a) The computation of the single plantwide predetermined overhead rate for Tent Master is $6 per DLH ($252,000/42,000).

b) The computation of the overhead cost per unit for Pup and Pop-up Tents for Tent Master is computed as follows:

                               Pup Tents     Pop-up Tents

Overhead cost     $24 ($6 x 4)    $18 ($6 x 3)

c) The computation of the product cost per unit for Pup and Pop-up Tents is as follows:

Per Unit      Selling     Direct     Direct  Overhead     Product

                    Price   Materials   Labor    per unit    Cost / Unit

Pup tent       $ 78         $ 20      $ 45        $24             $89

Pop-up tent    73             25         30         $18             $73

d) The computation of the gross profit per unit (selling price per unit minus the product cost per unit) of Pup and Pop-up Tents is as follows:

Per Unit      Selling     Direct    Direct  Overhead   Product    Gross Profit

                    Price   Materials  Labor    per unit   Cost / Unit  (Loss) per unit

Pup tent      $ 78       $ 20      $ 45         $24             $89     ($11) ($78 - $89)

Pop-up tent   73          25          30          $18             $73       $0 ($73 - $73)

<h3>What does a product cost?</h3>

The determination of the product cost includes the costs of direct materials, direct labor, and overhead.  The overhead cost is allocated to each unit based on a predetermined overhead rate (budgeted overheads/budgeted usage) or using an activity-based costing technique.

<h3>Data and Calculations:</h3>

Budgeted overhead costs = $252,000

Budgeted direct labor hours = 42,000

<h3>Question Completion:</h3>

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      Selling Price  Direct Materials  Direct Labor  DL Hours

Pup tent          $ 78                   $ 20                   $ 45            4

Pop-up tent       73                       25                      30            3

<h3>Required: </h3>

1. Compute a single plantwide overhead rate assuming the company allocates overhead costs based on 42,000 direct labor hours.

2. Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overhead cost per unit for each product.

3. Compute the product cost per unit for each product.

4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).

Learn more about calculating the predetermined overhead rates at brainly.com/question/26372929

You might be interested in
Examine the four different companies in the table, which shows their yearly
Dovator [93]

The type of taxation this table represents is option B Progressive Tax.

What are the type of Taxation?

There are mainly four types of Taxes, these are Regressive, progressive, Indirect, and Proportional. In the given question, the Progressive Taxation system is represented.

A Progressive Taxation system is one where companies which have lower income have lower tax rate in comparison to big companies. In the given question, the company which have the lowest income is giving 10% of total income, while the largest company is giving 20% of their income.

Learn More about Taxation System here:

brainly.com/question/23685057

#SPJ1

3 0
2 years ago
Select the correct answer from each drop-down menu.
Studentka2010 [4]

Answer:

<u><em>ending statement and complimentary close for her email</em></u>

we look forward to deliver your order and expect no further problems to arise.

Respectfully,

Sara Abdulla

6 0
3 years ago
Read 2 more answers
Products whose demand rises when another product’s price increases are called
Ludmilka [50]

Products whose demand rises when another product's price increases are called: Substitute goods

3 0
2 years ago
The role of management in the success of a business?
Kaylis [27]

Effective management theories can be the basis of a success in a business. ... It is thus the duty of managers to plan, organize, lead and control the various functional areas with the aim of ensuring that the entire organization moves towards the same organization

Mark me as brainliest

3 0
3 years ago
Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired​ consumption, investment, gover
Rudiy27

Answer:

The response options are:

B) real national income and AE.

C) AD and real national income.

D) the price level and desired consumption.

E) the price level and the equilibrium level of demand-determined national income.

The correct answer is: E) the price level and the equilibrium level of demand-determined national income.

Explanation:

Aggregate demand is the total planned or desired expenditure in the economy as a whole in a given period. It is determined by the aggregate price level and by factors such as investment, public spending and money supply.

COMPONENTS OF THE ADDED DEMAND:

Consumer expenses of domestic economies. It is the main component of aggregate demand.

Investment expenditure of companies or domestic economies. It refers to the increase in the physical capital stock, including the accumulation of stock of companies.

Purchases of goods and services for public service. Component

important, includes, for example, national defense expenses, salaries of officials, infrastructure, construction, etc.

Foreign demand (international trade). They are net exports exports - imports). It is a component of the total demand for the goods of an economy. The trade flows of a country are an engine that drives the economy to better product levels.

7 0
3 years ago
Other questions:
  • When peter metcalf describes black diamond's manufacturing facility in china as a "greenfield project, he means that . of all ma
    13·1 answer
  • Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for $15,000 in cas
    5·1 answer
  • New ________________ can improve economic activity provided that production costs are reduced and the economy can absorb those w
    6·1 answer
  • Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventor
    9·1 answer
  • 14 . Private solutions to correct for externalities
    14·1 answer
  • If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of eggs by 5 percent, for these
    11·1 answer
  • An institutional client wishes to open an account at a brokerage firm, but wants the positions in the account held at a bank and
    13·1 answer
  • Which expense is a direct cost in the product costing of a fabric manufacturer?
    12·1 answer
  • Nadine Chelesvig has patented her invention. She is offering a patent manufacturer two contracts for the exclusive right to manu
    10·1 answer
  • what is the present value of the following cash flow stream at a rate of 10.0%? years: 0 1 2 3 cfs: $750 $2,450 $3,175 $4,400
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!