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The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Product B $31 per unit Product A $17
The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Product B $31 per unit Product A $17 per unit 0.5 DLH per unit 1.5 DLH per unit 0.3 MH per unit Machine hours Batches Volume Engineering modifications Market price 130 batches 13,000 units 15 modifications $35 per unit The company's direct labor rate is $25 per direct labor hour (DLH). Additional information follows. Indirect Manufacturing Activities Engineering support Electricity Setup costs Costs 1 MH per unit 210 batches 5,000 units 65 modifications Driver $90 per unit $41,000 Engineering modifications 31,000 Machine hours 54,000 Batches Requirement 1: Calculate the plant-wide overhead rate based on direct labor hours. Round all your calculations to 2 decimal places. Plant-wide Overhead Rate = per DL hour Requirement 2: Calculate the total manufacturing costs per unit by product after applying the plant-wide overhead rate calculated above. Round all your calculations to 2 decimal places. Total Manufacturing Costs Per Product A Product B Unit Direct materials cost per unit Direct labor cost per unit Overhead per unit (using plant- wide rate) Total manufacturing costs per unit Requirement 3: Calculate the activity based costing (ABC) overhead rate for each indirect manufacturing activity. Round all your calculations to 2 decimal places. Activity Name Engineering support Electricity Setup costs ABC OH Rate per modification per machine hour per batch Requirement 4: Calculate the total manufacturing costs per unit by product after applying the ABC overhead rates calculated above. Round all your calculations to 2 decimal places. Total Manufacturing Costs Product A Product B Per Unit Direct materials cost per unit Direct labor cost per unit Overhead: Engineering support per unit Electricity per unit Setup costs per unit Total manufacturing costs per unit
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