Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

O YouTube Maps er 4 Homework Seved Help Save & Exit Submit Check my work Problem 4-1A Comparing costs using ABC with the plantwide overhead

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
O YouTube Maps er 4 Homework Seved Help Save & Exit Submit Check my work Problem 4-1A 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. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product $15 per unit 0.3 D per unit 0.1 MH per unit 125 batches 10,000 units 12 modifications 500 customers $30 per unit Products $24 per unit 1.6 t per unit 1.2 per unit 225 batches 2,000 unite 38 modifications 400 customers $120 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costa Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $24,500 Engineering modifications 34,000 Machine hours 52,500 Batches 81,000 Number of customers (Loss amounts should be indicated with minus sign. Round your per unit cost answers to 2 decimal places) eBook 1. Compute the manufacturing cost pering the plade overhead based on the per director hour Overhead costs Direct labor hours Overhead Assigned Product Product B Activity Drive Planwide Om Te Overhead Cost test per Product WO 1.2 What is the gross profit per unit? Product A Product Market price Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A and Product Busing the plantwide overhead rate? Product A Products Gross profit per unit Units purchased per customer Gross profit per customer 22 What is the cost of providing customer service to each customer? Number of customers Customer service costs Is the gross profit adequate for each customer of Product A and Busing the plantwide overhead rate? Product Product Gross profit per customer Customer service couper customer Profitos por customer 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 Product A Engineering support 24,500 CH Activity Driver Activity rate Total Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup $ Product B Engineering support Electricity Setup Product B Product A 15.00 $ Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit 6.00 24.00 32.00 0.00 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

FINANCIAL & MANAGERIAL ACCOUNTING FOR DECISION MAKERS

Authors: Dyckman, Hanlon, Magee, Pfeiffer, Hartgraves, Morse

3rd Edition

1618532340, 9781618532343

More Books

Students also viewed these Accounting questions