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The following data are for the two products produced by Tadros Company. Product A Product B Direct materials $ 14 per unit $ 25 per
The following data are for the two products produced by Tadros Company. |
Product A | Product B | |||
Direct materials | $ | 14 per unit | $ | 25 per unit |
Direct labor hours | 0.4 DLH per unit | 1.6 DLH per unit | ||
Machine hours | 0.3 MH per unit | 1.2 MH per unit | ||
Batches | 125 batches | 250 batches | ||
Volume | 10,000 units | 2,000 units | ||
Engineering modifications | 9 modifications | 45 modifications | ||
Number of customers | 500 customers | 400 customers | ||
Market price | $ | 35 per unit | $ | 95 per unit |
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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 | 27,000 | Machine hours | |||
Setup costs | 41,000 | Batches | |||
Nonmanufacturing | |||||
Customer service | 72,000 | Number of customers | |||
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