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Using Strategic Consider the following data for two products of Gitano Manufacturing. Overhead Cost Number of units produced... Direct labor cost (@$24 per DLH). Direct materials cost Product A 10,000 units 0.20 DLH per unit $2 per unit Product 2,000 units 0.25 DLH per unit $3 per unit Activity Machine setup Materials handling .. Quality control inspections $121,000 48,000 80,000 $249,000 Required Page 7 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. 2. If the market price for Product A is $20 and the market price for Product B is $60, determine the profit or loss per unit for each product. Comment on the results. Check (2) Product B, $26.10 per unit profit 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Number of setups required for production.. Number of parts required... Inspection hours required.. Product A 10 setups 1 part/unit 40 hours Product B 12 setups 3 parts/unit 210 hours 4. Determine the profit or loss per unit for each product. Should this information influence company strategy? Explain. (4) Product B, $(24.60) per unit loss Exercise 17-10 Calculated As: 1. Total direct labor hours: Product A Product Total direct labor hrs DLH DLH DLH Calculated As Plant-wide overhead rate: PRODUCT A PRODUCT B Direct materials A: # units x S/unit B: # units x $/unit Direct labor A: # DLH x S/DLH B:# DLH x S/DLH I OD Overhead A: # DLH X S/DLH B:# DLH x S/DLH Total manufacturing cost Number of units Manufacturing cost per unit 2 PRODUCT A PRODUCT B Price per unit Cost per unit Profit (loss) per unit Type your analysis here