Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Product B Number of units produced 13,500 units 2,000 units Direct labor cost ( $28 per DLH) 0.17 DLH per unit 0.26 DLH per unit Direct materials cost $ 1.80 per unit $ 2.30 per unit Activity Machine setup Materials handling Quality control inspections Overhead coats $151,640 58,000 60, 600 $270, 240 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. 0 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per un Product A Product B Product A Product B 2. If the market price for Product A is $29.12 and the market price for Product B is $60, 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 th cost per unit for Product A and for Product B? Product A Product B Number of setups required for production 5 setups 30 setups Number of parts required 8 part/unit 5 part/unit Inspection hours required 58 hours 245 hours Machine setup 02 Materials handling Quality control of Total Overhead Overhead Assigned Activity Driver Activity Rate Cost Product A Machine setup Materials handling Quality control S Product B Machine setup Materials handling Quality control $ Product A Product B Total manufacturing costs 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 Market price Product B 4.2 Based on your results in part 4, should the profit or loss per unit for each prodfict influence company strategy? Yes NO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human And Social Audit

Authors: N P Agarwal

1st Edition

8176113980, 978-8176113984

More Books

Students also viewed these Accounting questions

Question

List some of the direct and indirect channel options. LO9

Answered: 1 week ago