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For some reason I'm stuck on this one. Also, while solving can you note how you found the total number of parts for product A.
For some reason I'm stuck on this one. Also, while solving can you note how you found the total number of parts for product A. Thanks!
Check my work 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.) 10 Product A 12,000 units 0.16 DLH per unit $ 2.00 per unit Number of units produced Direct labor cost ($28 per DLH) Direct materials cost Product B 1,700 units 0.25 DLH per unit $ 2.30 per unit points eBook Activity Machine setup Materials handling Quality control inspections Overhead costs $ 77,305 60,000 85, 470 $222,775 Hint Required: Print 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. ul References Overhead costs Direct labor hours Overhead Assigned $ 222,775 $ 95.00 per direct labor hour 2,345 Activity Driver Plantwide OH rate Total Overhead Cost 1,920 $ 95.00 $ 182,400 [ 425 $ 95.00 $ 40,375 Product A Product B Units Produced 12,000 1,700 OH Cost per unit $ 15.20 $ 23.75 Product B 2.30 $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost Product A 2.00 $ 4.48 15.20 21.68 $ 7.00 23.75 $ 33.05 points 2. If the market price for Product A is $26.8 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 $ 26.80 $ 64.00 Manufacturing cost per unit (21.68) (33.05) Profit(loss) per unit 5.12 $ 30.95 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 11 setups 12 setups Number of parts required 16 part/unit 4 part/unit Inspection hours required 54 hours 205 hours eBook Hint Print $ $ 3,361.09 per setup 77,305 23 References Machine setup Overhead costs Number of setups Materials handling Overhead costs Number of parts Quality control Overhead costs Inspection hours | $ 60,000 o per part $ $ 330.00 per inspection hour 85,470 259 Overhead Assigned Activity Driver Activity Rate Total Overhead Cost Product A Machine setup Materials handling 10 points 11 setups parts 54 inspection hours per setup per part per inspection hour Quality control eBook 12 setups per setup $ Hint Product B Machine setup Materials handling Quality control 205 inspection hours per inspection hour Print References 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 Market price $ 26.80 Manufacturing cost per unit 0.00 Profit(loss) per unit $ Product B 64.00 0.00 4.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? Yes O NoStep by Step Solution
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