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Consider the following data for two products of Gitano Manufacturing. (Round your intermediate calculations and OH rate and cost per unit answers to 2
Consider the following data for two products of Gitano Manufacturing. (Round your intermediate calculations and OH rate and cost per unit answers to 2 decimal places) Number of units produced Direct labor cost @ $28 per DLH Product A 12,500 units Direct materials cost 0.20 DLH per unit $2.20 per unit Product B 1,800 units 0.27 DLH per unit $3.10 per unit Activity Machine setup Overhead costs $152,100 Materials handling 53,856 Quality control 65,760 Total $271,716 Number of setups Number of parts required/unit Number of inspection hours Product A Product B 6 20 54 00 St 18 11 220 2. Assume the market price for Product A is $34 and the market price for Product B is $71, determine the profit or loss per unit for each model. 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead, what is the cost per unit for Product A and Product B? 5. Should this information influence company strategy?
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