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Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round OH rate and cost per

Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round "OH rate and cost per unit" answers to 2 decimal places.)

Product A Product B
Number of units produced 10,000 units 2,000 units
Direct labor cost(@$24 per DLH) 0.20 DLH per unit 0.25 DLH per unit
Direct materials cost $ 2 per unit $ 3 per unit

Activity Overhead costs
Machine setup $ 121,000
Materials handling 48,000
Quality control 80,000
$ 249,000

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Should this information influence company strategy? Yes No

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