Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1 The following data are for the two products produced by Tadros Company Product A Product 8 Direct materials $14 per unit $25 per unit Direct labor hours 0.3 DLH per unit 1.6 DLH per unit Machine hours 8.2 MH per unit 1.2 MH per unit Batches 125 batches 250 batches Volume 10,000 units 2Toe units Engineering modifications 8 modifications t modifications Number of womens 500 customers 400 customers Market price $35 per unit 595 per unit per unit OK int The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. rences Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $26,008 Engineering modifications 17,600 Machine hours 42,000 Batches 75,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts she indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Prey 1 of 4 !!! Next > 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. OH Cost per Units Produced Total Overhead Cost unit Activity Driver Overhead Assigned Plantwide OH rate Product A Product B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Gross profit per unit 21 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Product A Product B Gross profit per unit Units purchased per customer Gross profit per customer Prey 1 of 4 !!! Next o O e here to search Gross profit per customer 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profiladequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Activity Driver Activity rate Total Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup Prev 1 of Next Total Overhead Cost Activity rate Activity Driver Overhead Assigned Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup ces Product A Product B 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 A Product B Market price (22 63) (8663) Prey 1 of 4 Next > IC raw Market price (2263) (86.63) 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? Activity based costing method Plantwide overhead rate method O Departmental overhead rate method Pie 1 of 4 Next > Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1 The following data are for the two products produced by Tadros Company Product A Product 8 Direct materials $14 per unit $25 per unit Direct labor hours 0.3 DLH per unit 1.6 DLH per unit Machine hours 8.2 MH per unit 1.2 MH per unit Batches 125 batches 250 batches Volume 10,000 units 2Toe units Engineering modifications 8 modifications t modifications Number of womens 500 customers 400 customers Market price $35 per unit 595 per unit per unit OK int The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. rences Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $26,008 Engineering modifications 17,600 Machine hours 42,000 Batches 75,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts she indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Prey 1 of 4 !!! Next > 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. OH Cost per Units Produced Total Overhead Cost unit Activity Driver Overhead Assigned Plantwide OH rate Product A Product B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Gross profit per unit 21 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Product A Product B Gross profit per unit Units purchased per customer Gross profit per customer Prey 1 of 4 !!! Next o O e here to search Gross profit per customer 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profiladequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Activity Driver Activity rate Total Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup Prev 1 of Next Total Overhead Cost Activity rate Activity Driver Overhead Assigned Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup ces Product A Product B 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 A Product B Market price (22 63) (8663) Prey 1 of 4 Next > IC raw Market price (2263) (86.63) 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? Activity based costing method Plantwide overhead rate method O Departmental overhead rate method Pie 1 of 4 Next >
