Product B Product A Direct materials $14 per unit 0.5 DLH per unit 0.4 MH per unit $25 per unit 1.5 DLH per unit 1.1 MH per unit Direct labor hours Machine hours Batches 125 batches 250 batches 10,000 units 10 modifications 2,000 units Volume Engineering modifications Number of customers 50 modifications 500 customers 400 customers 95 per unit per 'unit Market price $35 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing $24,500 Engineering modifications 24,800 41,000 Machine hours Batches Customer service 73,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. OH Cost per Activity Driver Overhead Assigned Plantwide OH rate Total Overhead Cost Units Produced unit Product A Product A Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost 1.2 What is the gross profit per unit? Product A Market price 0.00 Manufacturing cost per unit Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A using the plantwide overhead rate? Product A Gross profit per unit Units purchased per customer 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 using the plantwide overhead rate? Product A Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? 3.1 Determine the manufacturing cost per unit of Product A using ABC. Engineering Support Electricity Setup Total Overhead Assigned Activity rate Overhead Cost Activity Driver Product A Engineering support Electricity Setup Total overhead costs assigned Total units produced Overhead cost per unit Total Overhead Cost Overhead Assigned Activity Driver Activity rate Product A Engineering support Electricity Setup Total overhead costs assigned Total units produced Overhead cost per unit Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Product A 3.2 What is the gross profit per unit? Product A Market price Manufacturing cost per unit (27.37) Gross profit (loss) per unit 4.1 How much gross profit is generated by each customer of Product A using ABC? Product A Gross profit (loss) per unit Units purchased per customer Gross profit (loss) per customer 4.2 Is the gross profit adequate for each customer of Product A using ABC? Product A Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer le the profit adoguate ueina ARC? 24 5. Which method of product costing gives better information to managers of this company? OPlantwide overhead rate method Activity-based costing method Departmental overhead rate method