Exercise 4-10 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing. (Loss angounts 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 DL.IS Direct materials cost 13,500 14 DLH per 1.70 per unit 1.300 unl 0,25 DLR per un 2.50 per un Activity Machine setup Materials handling Quality control inspections 53.000 101.310 $219.285 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cont per unit for each product Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Product A Product B Product A Product B 2. If the market price for Product A is $25,86 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 is the cost per unit for Product A and for Product B? Product A Product B Number of setups required for production 30 Number of parts required Inspection hours required Dar ho Machine setup Materials handling Quality control Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Product A Machine setup Materials handling Quality control Product B Machine setup Materials handling Quality control Product A L 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 4.2 Should this information influence company strategy