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Maria works for a company that makes and sells vases, and she just completed the preliminary gross margin analysis related to the recently completed fiscal
Maria works for a company that makes and sells vases, and she just completed the preliminary gross margin analysis related to the recently completed fiscal year. She followed past practice and allocated MOH costs using a plant-wide rate based on DL hours. The company makes two varieties of vases: Sturdy and Delicate. Maria wasn't convinced that using a single plant-wide rate was the best way to go. So she divided the company's MOH costs into three categories according to common descriptions noted in the accounting system: molding (driven by DL hours), polishing (driven by machine hours), and packaging (driven by packaging hours). She gathered the following information to assist in her analysis. (c) Calculate the gross margin per unit for each type of vase (1) assuming the plant-wide rate was used and then (2) assuming the ABC rates were used. (Round answers to 2 decimal places, e.g. 15.25.)
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