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Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round OH rate and cost per
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round "OH rate and cost per unit" answers to 2 decimal places.) Product A Product B 2,000 units 0.25 DLH per unit $ 3 per unit Number of units produced Direct labor cost ( $24 per DLH) Direct materials cost 10,000 units 0.20 DLH per unit $ 2 per unit Activity Overhead costs Machine setup Materials handling Quality control inspections $121,000 48,000 80,000 $249,000 Required 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line Activity Driver OH Cost per unit Overhead Assigned ProductA Product B Plantwide OH rate Total Overhead Cost Units Produced Product A Product B 2. If the market price for Product A is $20 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
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