Tiger Pride Produces Two Product Lines: T-Shirts and Sweatshirts

question 153

Multiple Choice

Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:

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


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)

• A) $1.19 per unit
• B) $1.20 per unit
• C) $1.90 per unit
• D) $1.58 per unit

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Definitions:

Unpaid

The state of not having been paid for goods provided, services rendered, or work done.

Trade Practices Act

Legislation designed to regulate business conduct to ensure fair competition and protect consumers in certain jurisdictions.

Protection

Measures taken to guard against theft, harm, or damage.

Federal Competition Act

Legislation aimed at promoting and maintaining fair competition practices in the marketplace by regulating anti-competitive practices in a federal jurisdiction.