Tiger Pride produces two product lines: T-shirts and Sweatsh…

Questions

Tiger Pride prоduces twо prоduct lines: T-shirts аnd Sweаtshirts. Product profitаbility is analyzed as follows:                                                                            T-SHIRTS                              SWEATSHIRTS Production and sales volume                   64,000 units                            40,000 units Selling price                                                  $16.00                                        $29.00 Direct material                                               $2.50                                           $5.00 Direct labor                                                    $4.30                                           $7.20 Manufacturing overhead                              $1.70                                           $3.00 Gross profit                                                    $7.50                                         $13.80 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   Activities demanded 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)

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