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Author Question: Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed ... (Read 32 times)

clmills979

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on: Mar 6, 2021
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:

T-SHIRTSSWEATSHIRTS
Production and sales volume204,000 units34,000 units
Selling price$18.00$29.00
Direct material$1.60$ 5.00
Direct labor$4.30$ 7.20
Manufacturing overhead$4.60$ 3.00
Gross profit$ 7.50$13.80
Selling and administrative$3.50$ 7.00
Operating profit$4.00$ 6.80

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

ActivityActivity costActivity-cost driver
Supervision$130,560Direct labor hours (DLH)
Inspection$69,300Inspections

Activities demanded
T-SHIRTSSWEATSHIRTS
0.25 DLH/unit1.50 DLH/unit
51,000 DLHs51,000 DLHs
30,000 inspections19,500 inspections
Using an ABC system, next year's estimates show manufacturing overhead costs will total $227,300 for 46,000 T-shirts. If all other T-shirt costs and sales prices remain the same, the profitability that can be expected is ________. (Round the final answer to the nearest whole cent.)
◦ $8.60 per t-shirt
◦ $4.94 per t-shirt
◦ $3.66 per t-shirt
◦ ($0.27) per t-shirt
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by clmills979 on Mar 6, 2021

sultansheikh

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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clmills979

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Reply 2 on: Mar 6, 2021
Excellent

kthug

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Reply 3 on: Yesterday
Gracias!

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