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 Direct labor cost ( $27 per DLH) Direct materials cost 13,500 units 0.13 DLH per unit 1.60 per unit 1,700 units 0.30 DLH per unit 2.70 per unit Activity Overhead costs Machine setup Materials handling Quality control inspections $ 99,440 51,000 71,530 $221,970 Required Answer is complete but not entirely correct. 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line 98.00 per direct labor hour s 221.970s 2,265 Direct labor hours Activity Driver Plantwide OH Total Overhead OH Cost Overhead Assigned Units Produced Cost rate unit 98.00 98.00 ,755 Product A 171,990 13,500 12.74 700 29.40 Product B 510s 49,980 Total manufacturing cost per unit Product A Product B 1.60 $ Direct material cost per unit 2.70 8.10 Direct labor cost per unit 3.51 29.40 Overhead cost per unit 12.74 17.85$ 40.20 Total manufacturing cost 2. If the market price for Product A is $22.97 and the market price for Product B is $57, determine the profit or loss per unit for each product. Product A Product B 57.00 Market price 22.97$ (40.20) 16.80 Manufacturing cost per unit (17.85) 5.12$ Profit(loss) per unit 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to ucts, what is the cost per unit for Product A and for Product B? Product A Product B Number of setups required for roduction 4 setups setups Number of parts required 16 part/unit 7 part/unit Inspection hours required 56 hours 255 hours Machine setup $ 99.440$3,824.62 per setup Number of setups 26 Materials handling $51,000$ | 2279000| 0.22 per part Number of parts Quality control $71,530$ 311 230.00 per inspection hour Inspection hours Total Overhead Assigned Activity Driver Activity Rate Overhead Cost Product A setups 21 6,0001 parts 3,824.62 per setup 0.22per part $15,298 Machine setup Materials handling 48,337 230.00 per inspection hour 12,880 Quality control 56 inspection hours $ Total overhead costs assigned $76,515 Total units produced 13,495 Overhead cost per unit 5.67 Product B 22setups 3,824.62 per setup $ 84,142 Machine setup 11,900 parts 0.22 per part 2,618 Materials handling 230.00 per inspection hour 255inspection hours Quality control 58,650 Total overhead costs assigned $145,410 Total units produced 17,000 Overhead cost per unit 85.56 Total manufacturing costs Product A Product B 1.60 $ 2.70 Direct Materials per unit 3.51 8.10 Direct Labor per unit Overhead per unit 5.67 85.56 sh sh 10 78 Total overhead costs assigned $145,410 Total units produced 17,000 Overhead cost per unit $ 85.56 Total manufacturing costs Product A Product B 1.60 $ Direct Materials per unit 2.70 8.10 Direct Labor per unit 3.51 Overhead per unit 5.67 85.56 Total manufacturing cost per unit 10.78 $ 96.36 4. Determine the profit or loss per unit for each product assuming ABC costing Product A Product B 22.97$ 57.00 Market price Manufacturing cost per unit (96.36) (10.78) 12.19 X $ Profit(loss) per unit (39.36)
