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

	Product A			Product B
Direct materials	$	15 per unit		$	24 per unit
Direct labor hours		0.3 DLH per unit			1.6 DLH per unit
Machine hours		0.1 MH per unit			1.2 MH per unit
Batches		125 batches			225 batches
Volume		10,000 units			2,000 units
Engineering modifications		12 modifications			58 modifications
Number of customers		500 customers			400 customers
Market price	$	30 per unit		$	120 per unit

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

	Costs			Driver
Indirect manufacturing
Engineering support	$	24,500		Engineering modifications
Electricity		34,000		Machine hours
Setup costs		52,500		Batches
Nonmanufacturing
Customer service		81,000		Number of customers

* Answer is complete but not entirely correct. 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. $ 14.92 per direct labor Overhead costs Direct labor hours Overhead Assigned Product A Product B $ 92.500 6,200 Activity Driver 3,000 ,200 Plantwide OH Units Produced OH Cost $ $ 14.92 14.92 Total Overhead Cost $ 44,760 $ 47,744 10,000 2,000 $ $ 4.48 23.87 3 $ $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost Product 15.00 6.00 4.48 25.48 Product B 24.00 32.00 23.87 79.87 $ $ 1.2 What is the gross profit per unit? Product Product B Market price $ 30.00 $ 120.00 Manufacturing cost per unit (25.48) (79.87) Gross profit per unit $ 4.52 $ 40.13 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Product Product B Gross profit per unit $ 4.52 $ 40.13 Units purchased per customer 200 5 Gross profit per customer $ 90.40 $ 200.65 2.2 What is the cost of providing customer service to each customer? Customer service $ 22.000 $ 80.00 per customer Number of customers 900 905 using the plan de overhead rate? is the gross profit adequate for each customer of Product A and Product Gross proce s romer S 1940s GO is the protades ? 11 Determine the manufacturing cost per unit of each product line using ABC adess s 240ls 350.00 per modification 794 per machine hour Omhead easts ls 27000S Number of machine o 400 117.14 perbach Oradeasts Number of batches 41.200 OS 350 Activity rate Overhead s 350.00 per modification 754 per machine 117.14perbach 4,200 7,40 14,543 10.000 268 s Overhead Asigned Activity Driver Product A Inginering 120modifications $ Electricity 1000 machine hours $ Setup 125ches Total overhead consigned Total units produced Overhead cost per unit oduste Engineering modifications $ Each 2.000 machine hours Setup 225 c hes Total signed Total d e Ovom per unit Total manufacturing costs Products Direct Manager unit 15.00ls Direct Laborperunt 00 Orderunt Totalmente cosport 23 5 250.00 794 17:54 per modification permachine per bath 20,00 18.00 26257 2.000 Products 24.00 3 200 856 3.2 What is the gross profit per unit? Product A Product B Market price $ 30.00 $ 120.00 Manufacturing cost per unit (23.68) (88.86) Gross profitloss) per unit $ 6.32 $ 31.14 4.1 How much gross profit is generated by each customer of Product A and Product Busing ABC? Product Product B Gross profit(loss) per unit $ 6.32 $ 31.14 Units purchased per customer 20 5 Gross profit loss) per $ 126.40S customer 1 59.70 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 $ 128.40 $ 155.70 Customer service cost per customer 80.00 80.00 Profit (loss) per customer $ 48.40 $ 75.70 & is the profit adequate using ABC? Yes