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 (@ $29 per DLH) Direct materials cost Product A 11,500 units 0.13 DLH per unit $ 2.40 per unit Product B 1,900 units 0.26 DLH per unit $ 2.50 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 39,243 57, eee 85, see $173,043 Required: 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Direct labor hours S 173,043 $ 87.00 - Direct labor costs 1,989 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit 1,900 87.00 $ 165,300 11,500 S 14.38 Product Product B 494 s 87.00 $ 42.978 1,900 $ 22.62 Product A 2.40 Product B 2.50 $ S Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost 7.54 3.77 14.38 20.55 22.62 32.66 $ 2. If the market price for Product A is $23.72 and the market price for Product B is $64, determine the profit or loss per unit for each product. Product A Product B Market price S 23.72 5 64.00 Manufacturing cost per unit (20.55) (32.66) Profit(loss) per unit $ 3.171 s 31.34 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 Products Number of setups required for production 6 setups 34 setups Number of parts required 16 part/unit 6 part/unit Inspection hours required 56 hours 230 hours Machine setup Overhead costs S S 5.040.50 per setup 30.243 S 6 Number of setups Materials handling Overhead costs S S 3.562.50 per part 57,000 16 Number of parts Quality control Overhead costs S S 1.517.86 per inspection hour 85.000 $ 56 Inspection hours Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Product A Machine setup Materials handling 5,041 setups 3,563 parts Quality control 1,518 inspection hours S Product B Machine setup Materials handling Quality control $ 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 Yes O No