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1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. S 171.080

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1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. S 171.080 Overhead costs Direct labor hours Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product B Product A Product B 2. If the market price for Product A is $23.4 and the market price for Product B is $56, determine the profit or loss per unit for each product Product A Product B Market price 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Product Products Number of setups required for production 9 setups 26 setups Number of parts toquod 16 part/unit 10 partunit Inspection hours required 52 hours 240 hours Machine setup Materials handling Quality control Total Overhead Cost Activity Driver Activity Rate Overhead Assigned Product A Machino setup Matenals handling Quality control $ 0 Product B Machine setup Matonals handling Quality control s Product A Product B Total manufacturing costs Direct Materials per un Direct Labor por unit Ovochead por unt Total manufacturing cost per unit 4. Determine the profit or loss per unit for each product assuming ABC costing Product A Product B Market price 4.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? O No Yes Number of units produced Direct labor cost (@ $29 per DLH) Direct materials cost Product A 11,000 units 0.12 DLH per unit $ 2.40 per unit Product B 2,800 units 0.25 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 9,880 59,000 102,200 $171,089

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