The following data are for the two products produced by Tadros Company.

	Product A			Product B
Direct materials	$	20 per unit		$	30 per unit
Direct labor hours		0.5 DLH per unit			1.5 DLH per unit
Machine hours		0.4 MH per unit			1.2 MH per unit
Batches		200 batches			360 batches
Volume		16,000 units			3,600 units
Engineering modifications		14 modifications			86 modifications
Number of customers		800 customers			720 customers
Market price	$	60 per unit		$	240 per unit

The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.

	Costs			Driver
Indirect manufacturing
Engineering support	$	53,600		Engineering modifications
Electricity		42,880		Machine hours
Setup costs		171,520		Batches
Nonmanufacturing
Customer service		129,200		Number of customers

0 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs Direct labor hours Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced Product A OH Cost per unit Product B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Product B 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 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? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support of Electricity of Setup 01 Activity Driver Activity rate Total Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup S 0 Product B Engineering support Electricity Setup S 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit