Tiger Pride produces two product lines: T-shirts and Sweatsh…
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability 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)