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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:

  1. Calculate the total cost for each product line.
  2. Determine the overhead costs allocated to each product line.
  3. Prepare a cost summary report for P&G.
  4. 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.
  5. Analyze the cost efficiency and suggest any potential cost-saving measures.

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