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Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $16 per unit 2.2 DLH per unit
Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $16 per unit 2.2 DLH per unit 2.1 MH per unit 100 batches 17,eee units 2e modifications 1,700 customers $38 per unit Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 225 batches 2,eee units Be modifications 25e customers $130 per unit The company's direct labor rate is $27 per direct labor hour (DLH). Additional Information follows. Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $ 23,eee Engineering modifications 36,9ee Machine hours 1ee, 100 Batches 87,758 Number of customer's Required: 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the gross profit per unit? 21 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? 22 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. 3.2 What is the gross profit per unit? 4.1 How much gross profit is generated by each customer of Product A and Product Busing ABC? 4.2 is the gross profit adequate for each customer of Product A and B using ABC? 5. Which method of product costing gives better Information to managers of this company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the gross profit per unit? (Losses per unit and losses per customer should be indicated with a minus sign. Round your intermediate calculations and round OH rate and cost per unit answers to 2 decimal places.) Show less 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $160.000 O per direct labor hour Direct labor hours Overhead Assigned Activity Total Overhead Cost OH Cost per unit Driver Plantwide OH rate Units Produced Product A Product B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Gross profit per unit Required 1 Required 2 >
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