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Exercise 17-10 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated

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Exercise 17-10 Using ABC for strategic decisions LO P1, P3 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 ( $26 per DLH) Direct materials cost 11,500 units e.18 DLH per unit $ 2.40 per unit 1,700 units e.25 DUH per unit $ 2.50 per unit Activity Overhead costs $102,940 51,000 75,600 $229,540 Machine setup Materials handling Quality control inspections sing direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. 0 OH Cost per unit Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced Product A Product B Product A Product B 2. If the market price for Product A is $29.88 and the market price for Product B is $60, determine the profit or loss per unit for each product Product A Product B Market price ao thesd wo product n d tor Piadd B ABC Is sed for assigning overhoad costs to peoducts, Product A Product B Number of setups required for production Number of parts required setups part/unit 18 setups part/unit 11 12 hours hours 210 60 Inspection hours required Machine setup Materials handling Quality control Total Overhead Cost Activity Rate Overhead Assigned Activity Driver Product A Machine setup Materials handling Quality control 0 Product B Machine setup Materials handling Quality control 0 Total manufacturing costs Product B Product A 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 B Product A Market price

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