Number of units produced Direct labor cost (@$30 per DLH) Direct materials cost Product A 13,000 units 0.15 DLH per unit $2.30 per unit Product B 1,800 units 0.25 DLH per unit $3.00 per unit Activity Machine setup Parts handling Quality control inspections Overhead costs $ 69,960 56,000 97,240 $223,200 Activity Drivers Number of machine setups required for production Number of parts required Inspection hours required Product A 5 setups 8 part/unit 56 hours Product B 14 setups 10 parts/unit 230 hours 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. 0 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product B Product A Product B 2. Assume if the market price for Product A is $20 and the market price for Product B is $59, determine the profit or loss per unit for each product. Product A Product B Market price 3. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Machine setup 0 Materials handling 0 Quality control inspections 0 Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Machine setup Materials handling Quality control inspections $ 0 Product B Machine setup Materials handling Quality control inspections $ 0 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 A Product B Market price Should this information influence company strategy