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 Number of units produced 11,500 units Direct labor cost (@ $30 per DLH) 0.16 DLH per unit Direct materials cost $ 2.10 per unit Product B 1,900 units 0.26 DLH per unit $ 2.90 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 59,246 52,000 108, 150 $219,396 Required 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per Overhead Assigned Product A Required 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 $28.18 and the market price for Product B is $63, determine the profit or loss per unit for each product. Product A Product B Market price 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to products, what ie the net ner snit fnr Product A and for Product R2 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 setups 34 setups Number of parts required part/unit part/unit Inspection hours required hours 255 hours 54 Machine setup Materials handling Quality control trol Activity Driver Activity Rate Total Overhead Cost Overhead Assigned gned 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 Product B Market price 4.2 Should this information influence company strategy? o Yes O No