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Procter & Gamble (P&G) has the following production data for its product lines: Tide, Pampers, and Gillette: Product Direct Materials Direct Labor Overhead Rate (%
Procter & Gamble (P&G) has the following production data for its product lines: Tide, Pampers, and Gillette:
Product | Direct Materials | Direct Labor | Overhead Rate (% of Direct Labor) |
Tide | $20,000,000 | $10,000,000 | 160% |
Pampers | $25,000,000 | $12,000,000 | 160% |
Gillette | $30,000,000 | $15,000,000 | 160% |
Requirements:
- Calculate the total cost for each product line.
- Determine the overhead costs allocated to each product line.
- Prepare a cost summary report for P&G.
- Compute the cost per unit if 2,000,000 units of Tide, 1,500,000 units of Pampers, and 1,200,000 units of Gillette were produced.
- Analyze the cost efficiency and suggest any potential cost-saving measures.
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