The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Product A $15 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units 16 modifications 800 customers Volume Engineering modifications Number of customers $50 per unit Market price Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 84 modifications 720 customers $200 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Costs Engineering support $ 53,600 Electricity 42,880 171,520 Driver Engineering modifications Machine hours Setup costs Nonmanufacturing Customer service Batches 129,200 Number of customers 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. $ 620,000 $ Overhead Assigned Activity Driver Product A Product B 1.2 What is the gross profit per unit? Market price Gross profit per unit 2 310,000.00 Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product B Product A Product B 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Gross profit per unit Units purchased per customer Gross profit per customer Product A 2.2 What is the cost of providing customer service to each customer? 0 Product B Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? Product A Product B 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Overhead Assigned Product A Engineering support Electricity Setup Activity Driver 0 0 0 Activity rate Total Overhead Cost $ 0 Product B Engineering support Electricity Setup Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Product A Product B EA $ 0 3.2 What is the gross profit per unit? Product A Product B Market price (30.96) (102.94) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Units purchased per customer Gross profit (loss) per customer Product A Product B 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? Gross profit (loss) per customer Customer service cost per customer Product A Product B Profit (loss) per customer Is the profit adequate using ABC? 5. Which method of product costing gives better information to managers of this company? Method of product costing for better information