Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
| Production and sales volume | 192,000 units | 24,000 units |
| Selling price | $17.00 | $29.00 |
| Direct material | $1.70 | $ 5.00 |
| Manufacturing overhead | $3.50 | $ 3.00 |
| Selling and administrative | $4.10 | $ 7.00 |
| Operating profit | $3.40 | $ 6.80 |
Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:
| Activity | Activity cost | Activity-cost driver |
| Supervision | $123,480 | Direct labor hours (DLH) |
| Inspection | $104,800 | Inspections |
| T-SHIRTS | SWEATSHIRTS |
| 0.25 DLH/unit | 1.50 DLH/unit |
| 48,000 DLHs | 36,000 DLHs |
| 50,000 inspections | 15,500 inspections |
Under the revised ABC system, supervision costs allocated to Sweatshirts will be ________. (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
◦ $52,920
◦ $104,800
◦ $123,480
◦ None of these answers are correct.
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