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6. Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and

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6. Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places) Product A 10,500 units 0.14 DLH per unit $ 1.se per unit Product B Nunber of units produced Direct labor cost (@ $26 per DLH) Direct materials cost 1,900 units 0.28 DLH per unit $2.70 per unit points Activity Overhead costs Machine setup Materials handling Quality control inspections $ 51,390 53,000 65,780 $170,170 Required 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Total Overhead Cost OH Cost per unit Overhead Assigned Activity Driver Plantwide OH rate Units Produced Product A Product B Product A Product B 2. If the market price for Product A is $23.28 and the market price for Product B is $63, determine the profit or loss per unit for each product. 6. 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? points Product A Product B Number of setups required for production Number of parts required Inspection hours required setups partlunit 16 setups 12 partunit 56 hours 230 hours Machine setup Materials handling Quality control Total Overhead Assigned Activity Driver Activity Rate Overhead Cost Product A Machine setup Materials handling Quality control Total Overhead Assigned Activity Driver Activity Rate 6. Overhead Cost Product A Machine setup Materials handling Quality control points Product B Machine setup Materials handling Quality control Total manufacturing costs Product A Product B 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 Materials handling 6. Quality control Total manufacturing costs Product A Product B points 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 4.2 Should this information influence company strategy? No O Yes

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