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Comparing costs using ABC with the plantwide overhead rate A1 A2 P1 P3. Wade Company makes two distinct products, with the following information available for
Comparing costs using ABC with the plantwide overhead rate A1 A2 P1 P3.
Wade Company makes two distinct products, with the following information available for each.
Standard | Deluxe | |
Direct materials | $4 per unit | $8 per unit |
Direct labor hours | 4 DLH per unit | 5 DLH per unit |
Machine hours | 3 MH per unit | 3 MH per unit |
Batches | 175 batches | 75 batches |
Volume | 40,000 units | 10,000 units |
Engineering modifications | 50 modifications | 25 modifications |
Number of customers | 1,000 customers | 1,000 customers |
Market price | $92 per unit | $125 per unit |
The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.
Costs | Driver | |
Indirect manufacturing | ||
Engineering support | $56,250 | Engineering modifications |
Electricity | 112,500 | Machine hours |
Setup costs | 41,250 | Batches |
Nonmanufacturing | ||
Customer service | 250,000 | Number of customers |
Determine the manufacturing cost per unit of each product line using ABC. What is the gross profit per unit?
Please show work too thanks.
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