Titan Pride produces two product lines: T-shirts and Sweatshirts. The company has used a simple costing system since its inception. The budgeted factory overhead totals $242,000 and is allocated on the basis of 121,000 direct labor hours (DLHs). Additional production information for the two products is as follows: T-SHIRTS SWEATSHIRTS Production volume 60,000 units 35,000 units DHLs (per unit) 1.2 1.4 Direct costs (per unit) $ 6.50 $ 8.20 The company is currently considering implementing an ABC system to determine the unit costs of its products. The following ABC information has been collected: Activity Budgeted cost Cost allocation base Allocation base quantity T-shirts Sweatshirts Supervision $100,920 DLHs 45,000 42,000 Inspection $141,080 Number of Inspections 53,040 17,500Under the simple costing system, what is the predetermined overhead rate using DLH as the single cost driver?A. $1.2 / DLHB. $2 / DLHC. $1.4 / DLHD. $2.6 / DLHUnder the simple-costing system, what is unit cost of a sweatshirt? Group of answer choicesA. $8.50B. $11.00C. $10.20D. $9.60Under the ABC system, what is the overhead rate for the supervision activity? Group of answer choicesA. $2/DLHB. $2.40/DLHc. $2.24/DLHD. $1.16/DLHUnder the ABC system, the unit cost of a sweatshirt will be Group of answer choicesA. $10.59B. $10.2C. $11.36D. $9.59Assume that the ABC provides more accurate cost information. Based on the above results, it can be inferred that, under simple costing, T-shirts (not sweatshirts) are:.A. overcostedB. properly costedC. undercostedD. More information is needed to answer this question
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Titan Pride produces two product lines: T-shirts and Sweatshirts. The company has used a simple cost...
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