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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
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 $20 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price $55 per unit $220 per unit 20 modifications 800 customers 80 modifications 720 customers The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service Required: Costs Driver $ 53,600 Engineering modifications 42,880 Machine hours 171,520 Batches 121,600 Number of customers (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.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs Direct labor hours Overhead Assigned Product A Product B Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit
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