Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 A $15 per unit 0.5 OLH per unit 0.4 MH per unit 200 batches 16,000 units 14 modifications 800 customers $55 per unit Product 8 $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 86 modifications 720 customers $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows Cost: Driver Indirect manufacturing Engineering support $ 53,600 Engineering modifications Electricity 53,600 Machine hours Setup costs 160,800 Batches Nonmanufacturing Customer service 129,200 Number of customers Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead cost Units Produced OH Cost per unit Product A Product B Product A Product B 1.2 What is the gross profit per unit? 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 22 What is the cost of providing customer service to each customer? 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 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? 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 Cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Home Energy Audit Your Guide To Understanding And Reducing Your Home Energy Costs

Authors: Richard Montgomery

1st Edition

0471864668, 978-0471864660

More Books

Students also viewed these Accounting questions