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 Product B Number of units produced 10,500 units 1,800 units Direct labor cost (@ $27 per DLH) 0.14 DLH per unit 0.26 DLH per unit Direct materials cost $ 1.50 per unit $ 2.30 per unit Activity Overhead costs Machine setup $ 65,162 Materials handling 58,000 Quality control inspections 59,010 $ 182,172

1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line.
Overhead costs		0	per direct labor hour
Direct labor hours
Overhead Assigned	Activity Driver	Plantwide OH rate	Total Overhead Cost	Units Produced	OH Cost per unit
Product A
Product B
		Product A	Product B
2. If the market price for Product A is $24.68 and the market price for Product B is $58, determine the profit or loss per unit for each product.
		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?
	Product A		Product B
Number of setups required for production	6	setups	16	setups
Number of parts required	14	part/unit	11	part/unit
Inspection hours required	56	hours	225	hours
Machine setup
		0	per setup
Materials handling
		0	per part
Quality control
		0	per inspection hour
Overhead Assigned	Activity Driver		Activity Rate		Total Overhead Cost
Product A
Machine setup		setups		per setup
Materials handling		parts		per part
Quality control		inspection hours		per inspection hour
					$0
Product B
Machine setup
Materials handling
Quality control
					$0
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