4 Consider the following data for two products of Vigano Manufacturing. (Round OH rate and cost per unit answers to 2 decimal places.) Number of units produced Direct labor cost (@$31 per DLH) Direct materials cost Product A 13,500 units 0.19 DLH per unit $2.30 per unit Product B 1,600 units 0.25 DLH per unit $3.00 per unit eBook of Hint Activity Machine setup Parts handling Quality control inspections Overhead costs $152, 110 59,000 79,460 $ 290,570 Activity Drivers Number of machine setups required for production Number of parts required Inspection hours required Product A 4 setups 14 part/unit 54 hours Product B 16 setups 6 parts/unit 220 hours 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. $ 290,570 $ 11.15 per direct labor hour Overhead costs Direct labor hours 26,050 Activity Driver Overhead Assigned Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit 11.15 $ 0 11.000 Product A Product B $ $ 11.15 $ 0 1,200 Product A Product B 2. Assume if the market price for Product A is $26 and the market price for Product B is $60, determine the profit or loss 4. 2. Assume if the market price for Product A is $26 and the market price for Product B is $60, determine the profit or loss per unit for each product. Product A Product B Market price eBook 3. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Hint Machine setup Materials handling Quality control inspections Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Machine setup Materials handling Quality control inspections $ 0 Product B Machine setup Materials handling Quality control inspections 4 Product A Machine setup Materials handling Quality control inspections $ eBook Hint Product B Machine setup Materials handling Quality control inspections $ 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit 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 Should this information influence company strategy