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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...
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 QuantityDepartment 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 unitsMoves 800 moves 1,600 movesBatches 140 batches 420 batchesNumber of inspections 240 inspections 360 inspectionsMachine hours 7,000 MH 5,300 MHDirect labor hours 2,600 DLH 1,600 DLHModification orders 70 modification orders 210 modification ordersSpace occupied 4,300 square feet 4,300 square feetMaterial required 450,000 square yards 470,000 square yardsREQUIREMENT 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.)
