Question
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
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 11,500 units 1,500 units Direct labor cost (@ $24 per DLH) 0.21 DLH per unit 0.26 DLH per unit Direct materials cost $ 1.50 per unit $ 2.50 per unit Activity Overhead costs Machine setup $ 117,250 Materials handling 54,000 Quality control inspections 81,200 $ 252,450 Required: 4.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? No Yes
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