The following data are for the two products produced by Tadros Company, Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product $15 per unit 0.4 DLH per unit 0.3 MH per unit 95 batches 10,000 units 10 modifications 500 customers $35 per unit Product $27 per unit 1.4 DLH per unit 1.0 MH per unit 190 batches 2,000 units 50 modifications 400 customers $95 per unit per The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service Costs MAMAMLANMINDriver $23,500 Engineering modifications 20,000 Machine hours 42,000 Batches 74,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should be Indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Plantwide OH rate Total Overhead Coat a Units Produced nd OH Cost per unit Overhead Assigned Product A Product B Product Product B 1.2 What is the gross profit per unit? Product A Products 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 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? gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B 33 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 each product line using ABC. Engineering Support Electricity Setup Overhead Assigned Activity Driver Activity rate Total Overhead Cos Activity Driver Activity rate Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup Product B Engineering support Electricity | | Setup Product Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit ||||| 3.2 What is the gross profit per unit? Product A Product B Market price (25.99) FESTES (82.79) What is the gross profit per unit? Product A Produce Market price (25.99) (82.79) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B Units purchased per customer Gross profit (loss) per customer 4.2 is the gross profit adequate for each customer of Product A and B using ABC? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? 5. Which method of product costing gives better information to managers of this company? Activity-based costing method Plantwide overhead rate method 5. Which method of product costing gives better information to managers of this company? Activity-based costing method Plantwide overhead rate method Departmental overhead rate method
