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Problem 4-1A Comparing costs using ABC with the plantwide overhead rate P1 P3 A1 The following data are for the two products produced by Tadros
Problem 4-1A Comparing costs using ABC with the plantwide overhead rate P1 P3 A1 The following data are for the two products produced by Tadros Company. Product A Product B Direct materials $15 per unit 24 per unit Direct labor hours 0.3 DLH per unit l.6 DLH per unit Machine hours 0.1 MH per unit I.2 MH per unit Batches. 125 batches 225 batches Volume 2,000 units 10,000 units Engineering modifications 12 modifications 58 modifications Number of customers 500 customers 400 customers Market price. 30 per unit $120 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $24,500 Engineering modifications Electricity 34,000 Machine hours Setup costs 52,500 Batches Nonmanufacturing Customer service ,000 Number of customers
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