i need some to work this out because giving me the answer doesnt help. I do not understand this problem.
Check my work Vie Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2 The following data are for the two products produced by Tadros Company ok Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product: A $14 per unit 0.5 DLH per unit 0.4 MH per unit 115 batches 10,000 units 10 modifications 500 customers $35 per unit Product B $26 per unit 1.5 DLH per unit 1.1 MH per unit 230 batches 2,000 units 50 modifications 400 customers $95 per unit per unit nt ences The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver $22,660 Engineering modifications Indirect manufacturing Engineering support Electricity Setup costs Monmanufacturing Customer service 24,800 Machine hours 43,00 Batches 74,000 Number of customers Check my work View pre (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should be indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs Direct labor hours Overhead Assigned OH Cost per Units Produced 8,000 Activity Driver Plantwide OH rate Total Overhead Cost 4,000 $ 13.14 S 52,560 3,000 s 13.14 S 39,420 unit Product A Product B 10,000 20.000 Total manufacturing cost per unit: $ Product A 14.00 5 8.00 Product B 26.00 30.00 Total manufacturing cost $ 22.00 5 56.00 Check my work Vi 5 12 What is the gross profit per unit? es eBook Product A Product B Market price $ 35.00 $ 9500 Manufacturing cost per unit (22.00) (56.00) Gross profit per unit $ 7.74 s 19.29 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead tate? Product A Product B Gross profit per unit $ 7.74 $ 19.29 Units purchased per customer Gross profit per customer 2.2 What is the cost of providing customer service to each customer? Print eferences Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer You received no credit for this question in the previous attempt. Check my work Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support 0 Electricity Setup Overhead Assigned Activity Driver Activity rate Total Overhead Cost Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity Setup $ 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Che Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.2 What is the gross profit per unit? 1 Product A Product B Market price (27.40) (83.90) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 0 Units purchased per customer Gross profit (loss) per customer 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? Dendt DA Check my GIUSS PIOR (USS) pes Customer 2 is the gross profit adequato for each customer of Product A and B using ABC? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? ces 5. Which method of product costing gives better information to managers of this company? O Departmental overhead rate method O Plantwide overhead rate method Activity-based costing method
