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 13,000 units 0.18 DLH per unit $ 1.60 per unit Product B 1,100 units 0.28 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 92,012 60,000 96,900 $248,912 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product B Product A Product B 2. If the market price for Product A is $29.98 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 1. Assign these three overhead cost pools to each of the two products using ABC. Overhead Cost Activity Drivers Activity Rate Activity Supervision Depreciation of machinery Assembly line preparation Direct labor cost Machine hours Setups Rounded edge Activity rate Activity driver incurred Overhead assigned % 0 Supervision Depreciation of machinery Assembly line preparation Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly line preparation % 0 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge 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 7 setups setups Number of parts required part/unit part/unit Inspection hours required 50 hours 235 hours 18 Machine setup Materials handling Quality control Activity Driver Activity Rate Total Overhead Cost Overhead Assigned Product A Machine setup Materials handling Quality control 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 Market price Product B 1.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? Yes No