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 12,500 units 1,800 units Direct labor cost (@ $27 per DLH) 0.16 DLH per unit 0.27 DLH per unit Direct materials cost $ 2.10 per unit $ 2.70 per unit Activity Overhead costs Machine setup $ 109,206 Materials handling 53,000 Quality control inspections 64,020 $ 226,226

2. accounting

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 (@ $27 per DLH) Direct materials cost Product A 12,500 units 0.16 DLH per unit $ 2.10 per unit Product B 1,800 units 0.27 DLH per unit $ 2.70 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $109,206 53,000 64,020 $226, 226 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 $ 91.00 per direct labor hour 226,226 s 2,486 Direct labor hours Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A 2,000 $ 91.00 $ 182.000 12,500 $ 14.56 Product B 486 $ 91.00 $ 44 226 1,800 $ 24.57 Product B Product A 2.10 $ S 2.70 Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost 4.32 7.29 24.57 14.56 20.98 $ $ 34.56 2. If the market price for Product A is $26.1 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 $ 26.105 56.00 Manufacturing cost per unit (20.98) (34.56) Profit(loss) per unit $ 19.68 S 46.01 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? 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 6 setups 32 setups Number of parts required 16 part/unit 5 part/unit Inspection hours required 56 hours 235 hours $ 109 $ 2.87 per setup 38 Machine setup Overhead costs Number of setups Materials handling Overhead costs Number of parts $ 53,000 $ 2,523.81 per part 21 Quality control $ 220.00 per part Overhead costs Inspection hours 64.020 $ 291 Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Product A Machine setup Materials handling S $ 103 6 setups 16 parts 17.22 per setup 2,523.81 per part $ 40,381 56 inspection hours $ 220.00 per inspection hour 12,3201 Quality control Total overhead costs assigned Total units produced $ 52,804 $ 551 32 setups 5 parts 235 inspection hours $ $ $ 17.22 per setup 2,523.81 per part 220.00 per inspection hour Product B Machine setup Materials handling Quality control Total overhead costs assigned Total units produced Overhead cost per unit Total manufacturing costs Direct Materials per unit 12,619 51,700 64,870 14,300 $ $ 4.54 Product B Product A 2.10.00 2.70.00 7.29 Direct Labor per unit 3.361 Overhead per unit 6.42 4.54