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. Product A Product B S 14 per unit Direct materials Direct labor hours

image text in transcribed

image text in transcribed

image text in transcribed

The following data are for the two products produced by Tadros Company. Product A Product B S 14 per unit Direct materials Direct labor hours Machine hour S 27 per unit 0.4 DLH per unit 0.3 MH per unit 115 batches 10,000 units 8 modifications 500 customers 1.4 DLH per unit 1.0 MH per unit 230 batches 2,000 units 40 modifications 400 customers Engineering modifications Number of customers Market price S 35 per unit S 95 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Driver Indirect manufacturing Engineering support Electricity Setup costs S 24,000 Engineering modifications 25,000 Machine hours 40,000 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 should be indicated with minus sign.) 1. Compute the cost per unit using the plantwide overhead rate based on direct labor hours. OH Cost per Overhead Assigned Product A Product B Plantwide OH rate Total Overhead Cost Units Produced unit 4,000[ s 2,800 S 13.09 S 13.09 S 52,380 10,000 S 5.24 38,852 2,000 S 18.32 Total manufacturing cost per unit: Product A Direct material cost per unit Direct labor cost per unit Overhead cost per unit Product B 27.00 28.00 18.32 73.32 14.00 S 8.00 5.24 Total manufacturing cost 27.24 S 1.2 What is the gross profit per Product A Product B 95.00 (73.32) 21.88 Market price 35.00 S Manufacturing cost per unit (27.24) Gross profit per unit How much gross profit is 7.76 S by each customer of Product A and Product B using the plantwide overhead rate? Product A Product B Gross profit per unit 7.78 S 21.68 Units purchased per customer 20 Gross profit per customer 155.29S 108.38 2.2 What is the cost of customer service to each customer? ustomer sevice 81.11 Number of customers 900

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

Internal Revenue Service Status Of GAO Financial Audit And Related Financial Management Recommendations

Authors: Government Accountability Office

1st Edition

1492351571, 978-1492351573

More Books

Students also viewed these Accounting questions