Tent Master produces two lines of tents sold to outdoor enthusiasts. The tents a

Question

Tent Master 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 the company's production support activities follow. Process Department A Pattern alignment $120,960 Batches Quantity 1080 13,000 3,600 Activity Overhead Cost Driver Cutting Moving product 61100 Machine hours 122.400 Moves $304,460 6.400 800 30,600 Department B Sewing $556,800 Direct labor hours Inspecting Folding 59,200 Inspections 91,800 Units $707,800 Design Providing space Materials handling Support $280,000 Modification orders 64,400 Square feet 340,400 Square yards 280 9,200 920,000 $684,800 Additional production information on the two lines of tents follows. Pop-Up Tent 10,200 units 2.400 moves Pup Tent Units produced Moves Batches Number of inspections Machine hours Direct labor hours Modification orders Space occupied Material required 20,400 units 1,200 moves 270 batches 810 batches 320 inspections 8,000 MH 4,000 DLH 480 inspections 5,000 MH 2.400 DLH 70 modification orders 210 modification orders 4,600 square feet 430,000 square yards 4,600 square feet 490,000 square yards

Explanation / Answer

Pattern alignment

Overhead cost = $120960
Activity driver = 1080
Activity rate = $112

Cutting

Overhead cost = $61100
Activity driver = 13000
Activity rate = $4.7

Moving product

Overhead cost = $122400
Activity driver = 3600
Activity rate = $34

Sewing

Overhead cost = $55600
Activity driver = 6400
Activity rate = $87

Inspecting

Overhead cost = $59200
Activity driver = 800
Activity rate = $74

Folding

Overhead cost = $91800
Activity driver = 30600
Activity rate = $3

Design

Overhead cost = $280000
Activity driver = 280
Activity rate = $1000

Providing space

Overhead cost = $64400
Activity driver = 9200
Activity rate = $7

Materials handling

Overhead cost = $340400
Activity driver = 920000
Activity rate = $0.37

Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Pup Tent Pattern alignment 270 $112 $30240 Cutting 8000 4.70 37600 Moving product 1200 34 40800 sewing 4000 87 348000 inspecting 320 74 23680 Folding 20400 3 61200 Design 70 1000 70000 Providing space 4600 7 32200 Material handling 430000 0.37 159100 $802820 No. of units 20400 Overhead per unit $39.35 Pop-up tent Pattern alignment 810 $112 $90720 Cutting 5000 4.70 23500 Moving product 2400 34 81600 Sewing 2400 87 208800 Inspecting 480 74 35520 Folding 10200 3 30600 Design 210 1000 210000 Providing space 4600 7 32200 Material handling 490000 0.37 181300 $894240 No. of units 10200 Overhead per unit $87.67

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