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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

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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.) Number of units produced Direct labor cost ( 528 per DLR) Direct materiale cost Product A 12,500 units 0.19 DIH per unit $ 2.10 per unit Products 1,600 units 0.22 DLH per unit 5.2.30 per unit Activity Machine setup Materials handling Quality control inspections Overhead conta 5112,183 51,000 79.520 $242,703 Required: 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product Product B Che Product A Product B 2. If the market price for Product A is $29.45 and the market price for Product B is $61, 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 9 setups 36 setups Number of parts required 12 part/unit 10 part/unit Inspection hours required 54 230 hours Hours Machine setup Materials handling Check Quality control Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Product A Machine setup Materials handling Quality control $ 0 Product B Machine setup Materials handling Quality control $ Product A Total manufacturing costs Direct Materials per unit Product B 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 product influence company strategy? Yes

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