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The following data are for the two products produced by Tadros Company. 22A bethae Product A Product B Direct materials $14 per unit . $26

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The following data are for the two products produced by Tadros Company. 22A bethae Product A Product B Direct materials $14 per unit . $26 per unit Direct labor hours 0.3 DLH per unit 1.4 DLH per unit Machine hours 0.2 MH per unit 1.0 MH per unit Batches 110 batches Volume 10,000 units Engineering modifications 9 modifications 45 modifications Number of customers 500 customers 400 customers Market price $35 per unit 95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $23.500 Engineering modifications Electricity 24,000 Machine hours Setup costs 40,000 Batches Nonmanufacturing Customer service 74,000 Number of customers 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs T O T Direct labor hours Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced lud OH Cost per unit Product A Product B Product 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 2.2 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 profit adequate? Yes Yes Is the profit adequate? Yes 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 Product A Engineering support Electricity Setup Product 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 (22.93) (83.12 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 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

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