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connect The following data are for the two products produced by Tadros Company PROBLEM SETA Problem 17-1A Comparing costs using ABC with the plantwide overhead

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connect The following data are for the two products produced by Tadros Company PROBLEM SETA Problem 17-1A Comparing costs using ABC with the plantwide overhead rate P1 P3 A1 A2 Product A Product B $15 per unit $24 per unt Direct materials Direct labor hours Machine hours Batches .0.3 DLH per unit 1.6 DLH per unit Q.1 MH per unit 1.2 MH per unit 125 batches 10,000 units 225 batches 2.000 units Volume .12 modifications 58 modifications 500 customers 400 customers Number of customers Market price. $30 per unit$120 per unit The company's direct labor rate is S20 per direct labor hour (DLH) Additional information follows. Costs Driver $24,500 Engineering modifications 34000 Batches s2.500 Batches Engineering support ....$ Machine hours Setup costs .. 81,000 Number of customers Customer service... Required Check (1) Product A, $26.37 per unit cost direct labor 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on hours. What is the gross profit per unit? How much gross profit is generated by each customer of Product A using the plantwide overhead rate? How much gross profit is generated by each customer of Product B using the plantwide overhead rate? What is the cost of providing customer service to each customer? What information is provided by this comparison? Determine the manufacturing cost per unit of each product line using ABC. What is the gross profit 2. 3) Product A $24.30 per unit cost per unit? 4. How much gross profit is generated by each customer of Product A using ABC? How much gross profit is generated by each customer of Product B using ABC? Is the gross profit per customer adequate? 5. Which method of product costing gives better information to managers of this company? Explain why

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