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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. Product A Product B Direct materials $15 per unit $27 per unit Direct labor hours 0.6 DLH per unit 1.5 DLH per unit Machine hours 0.5 MH per unit 1.1 MH per unit Batches 95 batches 190 batches Volume 10, 000 units 2,000 units Engineering modifications 8 modifications 40 modifications Number of customers 500 customers 400 customers Market price $35 per unit 95 per unit per Punit ences The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $23, 000 Engineering modifications Electricity 36,000 Machine hours Setup costs 40, 000 Batches Nonmanufacturing Customer service 70,000 Number of customers Required: (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.)Is the profit adequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support joints Electricity eBook Setup Print Total Overhead Assigned Activity Driver Activity rate Overhead References Cost Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup $Total manufacturing costs Product A Product B Direct Materials per unit Direct Labor per unit points Overhead per unit Total manufacturing cost per unit eBook 3.2 What is the gross profit per unit? Product A Product B Market price Print (31.22) (85.42) References 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? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC?5. Which method of product costing gives better information to managers of this company? O Activity-based costing method Departmental overhead rate method OPlantwide overhead rate method