Answer the Following Questions Using the Information Below:
Tiger Pride

question 159

Multiple Choice

Answer the following questions using the information below:
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
$\begin{array}{lrr}&\text { T-SHIRTS }&\text { SWEATSHIRTS }\\\text { Production and sales volume } & 60,000 \text { units } & 35,000 \text { units } \\\text { Selling price } & \$ 16.00 & \$ 29.00 \\\text { Direct material } & \$ 2.00 & \$ 5.00 \\\text { Direct labor } & \$ 4.50 & \$ 7.20 \\\text { Manufacturing overhead } & \$ 2.00 & \$ 3.00\\\text { Gross profit } & \$ 7.50 & \$ 13.80 \\\text { Selling and administrative } & \$ 4.00 & \$ 7.00 \\\text { Operating profit } & \$ 3.50 & \$ 6.80\end{array}$ What is projected operating income if direct materials costs of T-Shirts increase to $4.00 per unit and direct labor costs of Sweatshirts increase to $8.20 per unit?
-Under the revised ABC system,supervision costs allocated to Sweatshirts will be ________.

• A) $48,720
• B) $100,800
• C) $100,920
• D) None of these answers are correct.

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Definitions:

Retention Schedule

A schedule that details how long to keep different types of patient records in the office after they have become inactive or closed and how long the records should be stored.

Storage Area

A designated space or room used for storing goods, materials, or equipment, often arranged to maximize space efficiency and preserve the condition of the stored items.

Smaller Than Standard

Refers to an object or measurement that is less than the accepted or usual size or dimension.

Sheet Protector

A Sheet Protector is a clear plastic cover designed to protect documents from damage or wear, typically used in binders or for presentation.