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Please help solve. The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering
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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 A $20 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units 16 modifications 800 customers $50 per unit Product B $30 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 84 modifications 720 customers $200 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $ 53,600 Engineering modifications Electricity 53,600 Machine hours Setup costs 160,800 Batches Nonmanufacturing Customer service 129,200 Number of customers 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Overhead costs $ 53,600 $ 536.00 per modification Number of modifications 100 Electricity Overhead costs 268,000 X $ 50.00 per machine hour Number of machine hours 5,360 X Setup Overhead costs Number of batches 0 per batch Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Engineering support Electricity Setup $ O Product B Engineering support Electricity Setup $ O Total manufacturing costs Product A Product B Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (36.13) (107.22) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 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? Method of product costing for better information Departmental overhead rate methodStep by Step Solution
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