https x G what x Chap X Ques X Dash x Cale X Shep X i Join X Audi X G Good X Card X Hom x http: x Greas( X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts... HW #5 (ch.5)- ABC & Profitability Saved Help Save & Exit Submit Check my work 5 Eastern Chemical Company produces three products. The operating results of the current year are: Sales Target Actual 8.75 Product Quantity Price Price Difference 1, 650 $ 297.00 $ 298.00 $ 1.00 points B , 250 309 .60 267.60 (42.00) 825 214.50 322.00 $ 107.50 8 02:58:58 The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product C at a much higher price than the target price of the product and lost money on Product B. Tom Watson, CEO, wants to promote Product C much more aggressively and phase out Product B. He believes that the Information suggests that Product C has the greatest potential among the firm's three products because the actual selling price of Product C was almost 50% higher than the eBook target price, while the firm was forced to sell Product B at a price below the target price. Both the budgeted and actual factory overhead for the current year are $767,700. The actual units sold for each product also are the same as the budgeted units. The firm uses direct labor dollars to assign manufacturing overhead costs. The direct materials and direct References labor costs per unit for each product are: Product A Product B Product C Direct materials $ 62.00 $ 126.40 $ 77.00 Direct labor 32.00 24.06 16.50 Total prime cost $ 94.00 $ 150.40 $ 93.50 The controller noticed that not all products consumed factory overhead similarly. Upon further investigation, she identified the following usage of factory overhead during the year: Total Product A Product B Product C Overhead Number of setups $ 8,700 Weight of direct materials (pounds) 412 262 362 181, 500 Waste and hazardous disposals 37 42 412, 500 Quality inspections 42 47 47 87,000 Utilities (machine hours) 3,300 3, 200 1, 650 78, 000 Total $ 767, 700 Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. 2. What is the least profitable and the most profitable product under both the current and the ABC systems? 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Graw Hill 60 F 8:23 PM Mostly clear O O O E 9 W 9/26/2022 20https x G what x Chap X Ques X Dash x Cale X Shep X i Join X Audi X G Good X Card X Hom x http: x Greas( X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts... HW #5 (ch.5)- ABC & Profitability Saved Help Save & Exit Submit Check my work 5 Direct labor 32.00 24.00 16.50 Total prime cost $ 94.00 $ 150.46 $ 93.50 The controller noticed that not all products consumed factory overhead similarly. Upon further investigation, she identified the 8.75 following usage of factory overhead during the year: points Total Product A Product B Product C Overhead 8 02:58:53 Number of setups $ 8,70 Weight of direct materials (pounds) 412 262 62 181, 500 Waste and hazardous disposals 37 57 42 412, 500 Quality inspections 42 47 47 87,000 Utilities (machine hours) 3,300 5, 260 1, 650 78,000 Total $ 767, 700 eBook Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. References 2. What is the least profitable and the most profitable product under both the current and the ABC systems? 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the manufacturing cost per unit for each of the products using the volume-based method. (Round your intermediate calculations and final answers to 2 decimal places. Product A Product B Product C Materials Labor Overhead Total cost 0.00 $ 0.00 S 0.00 Required 1 Required 2 > MS Hill 60F HO O E 9 W 8:23 PM Mostly clear 9/26/2022 20