3 Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2 20 points 02 4003 The following data are for the two products produced by Tadros Company Product A Product B Direct materials $15 per unit $24 per unit Direct labor hours 0.3 DLH per unit 1.6 DLH per unit Machine hours 0.1 MH per unit 1.2 MH per unit Batches 125 batches 225 batches Volume 10,000 units 2,000 units Engineering modifications 12 modifications 58 modifications Number of customers 500 customers 400 custoners Market price $30 per unit $120 per unit Book eferences The company's direct labor rate is $20 per direct lobor hour (DLH), Additional information follows Indirect manufacturing Engineering support Electricity Setup costs Nonnanufacturing Customer service Costs Driver $24.500 Engineering modifications 34,000 Machine hours 52,500 Batches 81,000 Number of customers Required: The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $24,500 Engineering modifications Electricity 34,000 Machine hours Setup costs 52,500 Batches Nonmanufacturing Customer service 81,000 Number of customers Required: (Loss amounts should be indicated with minus sign. Round your per unit cost answers to 2 decimal places.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $ 192,000 $ 30.97 per direct labor hour Direct labor hours 6,200 Overhead Assigned Activity OH Cost per Driver Plantwide OH rate Total Overhead Cost Units Produced unit Product A 10,000 Product B 2,000 DA Dradiset 3 Product A Product B 2:39.36 ook rences 1.2 What is the gross profit per unit? Product A Product B Market price $ 36.00 $ 95.00 Manufacturing cost per unit 0.00 0.00 Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Product A Product B Gross profit per unit Units purchased per customer Gross profit per customer 22 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? aw 1