Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
| Production and sales volume | 64,000 units | 40,000 units |
| Selling price | $16.00 | $29.00 |
| Direct material | $2.50 | $ 5.00 |
| Manufacturing overhead | $1.70 | $ 3.00 |
| Selling and administrative | $4.30 | $ 7.00 |
| Operating profit | $3.20 | $ 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 | $107,520 | Direct labor hours (DLH) |
| Inspection | $70,200 | Inspections |
| T-SHIRTS | SWEATSHIRTS |
| 0.75 DLH/unit | 1.20 DLH/unit |
| 48,000 DLHs | 48,000 DLHs |
| 40,000 inspections | 18,500 inspections |
Under the revised ABC system, overhead costs per unit for the Sweatshirts will be ________. (Do not round interim calculations. Round the final answer to the nearest cent)
◦ $1.19 per unit
◦ $1.20 per unit
◦ $1.90 per unit
◦ $1.58 per unit
Tiger quoll at Healesville Sanctuary, Victoria, Australia.
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