Answered step by step
Verified Expert Solution
Question
1 Approved Answer
market price for product A is $22.24 and market price for product B is $61 Consider the following data for two products of Gitano Manufacturing
market price for product A is $22.24 and market price for product B is $61 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.) Product A Product B Number of units produced 13,000 units 1,500 units Direct labor cost ( 528 per DLH) 0.12 DLH per unit 0.21 DLH per unit Direct materials cost $ 1.60 per unit $ 2.10 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 19,140 58,000 95,360 $172.500 1. Using direct labor hours as the basis for assigning overhead conta, determine the total production cost per unit for each product line Activity Driver Plantwide OH rate Total Overhead Cost Overhead Assigned Product A Product Units Produced OH Cost per unit Product A Product B 2. If the market price for Product Als 522 24 and the market price for Product is $61, determine the profit or loss per unit for each product. Product A Products Market price 3. Consider the following additional information about these two product lines ABC for mini cost per unit for produse and for 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 07 Product A Product B Number of setupa required for production 4 setups 32 setups Number of parts required 14 par unit 3 part/unit Inspection hours required 48 hours 250 hours Machine setup Ook of Pit Materials handling of Quality control Activity Driver Activity Rate Total Overhead Cost Overhead Assigned Product Machine soup Material handing Quality control $ a Product Machines 0 Product B Machine setup Materials handling Quality control $ 0 Product Product Total manufacturing costs Direct Materials per unit Direct Laber per un Overhead per un Total manufacturing cost per unit Determine the profit or los per unit for each product assuming ANC cesting Product Market price Product
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started