QUESTION 1:

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 1.6 DLH per unit Machine hours 0.1 MH per unit 1.2 MH per unit Batches 125 batches 225 batches Volume 16,000 units 2,660 units Engineering modifications 12 modifications 58 modifications Number of customers 566 customers 406 customers Market price $36 per unit $126 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $24,506 Engineering modifications Electricity 34,006 Machine hours Setup costs 52,506 Batches Nonmanufacturing Customer service 81,006 Number of customers Required: (Loss amounts should be indicated with minus sign. Round your per unit cost answers to 2 decimal places.) Q Answer is not complete. Direct materials Q 0 Direct labor hours 0 Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Gross profit per unit 2.1 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 2.2 What is the cost of providing customer service to each customer? 0 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 profit adequate?\fProduct B Engineering support Electricity Setup Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Market price Units purchased per customer Gross prot (loss) per customer Gross prot (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? Method of product costing for better information Requhedinfonnaon [The following information applies to the questions displayed below] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Grinding Polishing Product modification Providing power System calibration Indirect Labor $320,000 600,000 500,000 Indirect Materials $135,000 Other Overhead $255,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration Number of units Machine hours Engineering hours Batches Direct labor hours 13,000 1,500 17,000 400 Job 3175 200 units 550 NH 26 eng. hours 30 batches 500 DLH machine hours engineering hours direct labor hours batches Job 4286 2,500 units 5,500 NH 32 eng. hours 90 batches 4,375 DLH Required: 2, 3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing costs into a single cost pool. Determine overhead costs to assign to the above jobs using ABC. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Round average overhead cost per unit to 2 decimal places.) 6 Answer is not complete. Grinding & polishing $ 515,000 0 Machine hours Product modication Eggineering Providing power Direct labor hrs. System calibration batches 374 6 per batch X Answer is not complete. Job 3175 Job 4286 Activity Overhead Activity Rate Activity driver incurred Overhead assigned driver incurred assigned urs hrs. 374 x per batchRequired information [The following information applies to the questions displayed below. ] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $320,000 Polishing $135,000 Product modification 600,000 Providing power $255,000 System calibration 500,000 Additional information on the drivers for its production activities follows Grinding and Polishing 13,000 machine hours Product modification 1,500 engineering hours Providing power 17,000 direct labor hours System calibration 400 batches Job 3175 Job 4286 Number of units 200 units 2,500 units Machine hours 550 MH 5,500 MH Engineering hours 26 eng. hours 32 eng. hours Batches 30 batches 90 batches Direct labor hours 500 DLH 4,375 DLH Required: 5. Ifthe company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit ofJob 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.) Required: 5. lfthe company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)