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please help The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications
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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 $15 per unit 0.5 DLH per unit 8.4 MH per unit 200 batches 16,000 units 14 modifications 800 customers $50 per unit Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 86 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 Electricity Setup costs Non manufacturing Customer service $ 53,600 53,600 160,800 Engineering modifications Machine hours Batches 129,280 Number of customers O 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours Overhead costs Direct labor hours 0 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product look Product A Product Print Q rences 1.2 What is the gross profit per unit? Product Product Market price Gross profit per unit 2.1 How much gross profit is generated by each customer of Product and Product Busing the plantwide overhead rate? Product Product B Gross profit per unit Units purchased per customer Gross prot per customer 22 What is the cost of providing customer service to each customer 0 Is the gross profit adequate for all austomer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Prolit (loss) per customer is the profit adequate? 3. Determine the manufacturing cost per unit of each product line using ABC Engineering Support 0 Electricity Setup 3 Overhead Assigned Activity Driver Activity rate Total Overhead Cost nces Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity Setup + S o Product A Products Total manufacturing costs 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 Product Market price (3100) (102.52) 4.1 How much gross profit is generated by each customer of Product A and Product Busing ABC? Product A Product B Units purchased per customer Gross profit (loss) per customer 42 is the gross profit adequate for each customer of Product A and Busing ABC? Product Product B Gross proft (lon) 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 Step by Step Solution
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