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	12,000 units	1,200 units
Direct labor cost (@ $28 per DLH)	0.15 DLH per unit	0.25 DLH per unit
Direct materials cost	$ 1.80 per unit	$ 2.70 per unit

Activity	Overhead costs
Machine setup		$	50,560
Materials handling			52,000
Quality control inspections			82,240
		$	184,800

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 costs Direct labor hours Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Product A Product B Product A Product B 2. If the market price for Product A is $25.44 and the market price for Product B is $56, 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 setups 32 Number of setups required for production Number of parts required Inspection hours required Product B setups part/unit 14 part/unit 4 205 52 hours hours Machine setup 0 Materials handling 0 Quality control 02 Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Product A Machine setup Materials handling Quality control S 0 Product B Machine setup Materials handling Quality control s 0 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 Product B Market price 4.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? O No O Yes