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also provide how to solve it. example: (150+100) The following data are for the two products produced by Tadros Company Product A Product B Direct
also provide how to solve it. example: (150+100)
The following data are for the two products produced by Tadros Company Product A Product B Direct materials $15 per unit $25 per unit Direct labor hours 0.5 DLH per 1.5 DLH per unit unit 0.4 MH per 1.2 MH per Machine hours unit unit Batches 200 batches 360 batches Volume 16,000 units 3,600 units Engineering 12 88 modifications modifications modifications Number of customers 800 customers 720 customers Market price $55 per unit $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional Information follows. Costs Driver Indirect manufacturing Engineering Engineering support $ 53,600 modifications Electricity 53,600 Machine hours Setup costs 160,800 Batches Nonmanufacturing Customer service 144,400 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should be indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $ 268,000 $ per direct labor 20.00 hour Direct labor hours 13,400 Overhead Assigned Activity Plantwide OH Total Overhead Units OH Cost Driver rate Cost Produced per unit Product A 8,000 $ 20.00 $ 160,000 16.000 Product B 5,400 $ 20.00 $ 108,000 3,600 Total manufacturing cost per unit: $ Product A 15.00 $ 10.00 Product B 25.00 30.00 Total manufacturing cost $ 25.00 $ 55.00 1.2 What is the gross profit per unit? Product A Product B Market price $ 55.00 $ 220.00 Manufacturing cost per unit (25.00) (55.00) 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 2.2 What is the cost of providing customer service to each customer? 0 Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support of Electricity of Setup ol Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Engineering support Electricity Setup $ 0 Product B Engineering Support Electricity Setup $ 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (30.99) (102.82) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B Units purchased per customer Gross profit loss) per customer 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? 5. Which method of product costing gives better information to managers of this company? Method of product costing for better informationStep by Step Solution
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