The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Number of customers Engineering modifications Market price Product A $20 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units 16 modifications 800 customers $55 per unit Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 84 modifications 720 customers $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Costs Driver Engineering support $ 53,600 Engineering modifications Electricity 42,880 Machine hours Setup costs 171,520 Batches Nonmanufacturing Customer service 129,200 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should be indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $ Direct labor hours Overhead Assigned Product A Product B 268,000 $ 13,400 20.00 per direct labor hour Activity Driver 8,000 $ Plantwide OH rate Total Overhead Cost 20.00 $ 160,000 Units Produced OH Cost per unit 16,000 $ 10.00 5,400 $ 20.00 $ 108,000 3,600 $ 30.00 Product A Product B $ 20.00 $ 30.00 16.00 48.00 10.00 30.00 $ 46.00 $ 108.00 Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost 1.2 What is the gross profit per unit? Market price Manufacturing cost per unit Gross profit per unit Product A Product B $ 52.00 $ 220.00 (46.00) (108.00) 6.00 $ 92.00 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 Product B 6.00 $ 20 92.00 9 192.00 $ 828.00 2.2 What is the cost of providing customer service to each customer? Customer service costs Number of customers $ 129,200 $ 1,520 85.00 per customer 2.2 What is the cost of providing customer service to each customer? Customer service costs Number of customers $ 129,200 $ 1,520 85.00 per 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 $ 192.00 $ 828.00 Customer service cost per customer 90.00 90.00 Profit (loss) per customer $ 102.00 $ 738.00 Is the profit adequate? Yes Yes 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Overhead costs $ Number of modifications 53,600 $ 100 536.00 per modification Electricity Overhead costs Number of machine hours $ 42,880 $ 4.00 per machine hour 10,720 Setup Overhead costs Number of batches $ 171,520 $ 560 306.29 per batch Overhead Assigned Product A Engineering support Electricity Setup Total overhead costs assigned Total units produced Overhead cost per unit Product B Engineering support Electricity Setup Total overhead costs assigned Total units produced Overhead cost per unit 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? Market price Manufacturing cost per unit Gross profit(loss) per unit Total Overhead Activity Driver Activity rate Cost 14 modifications $ 536.00 per modification $ 7,504 6,400 machine hours $ 4.00 per machine hour 25,600 200 batches $ 306.29 per batch 61,257 $ 94,361 16,000 5.90 86 modifications $ 536.00 per modification $ 46,096 4,320 machine hours $ 4.00 per machine hour 17,280 360 batches $ 306.29 per batch 110,264 $ 173,640 3,600 Product A Product B $ 20.00 $ 16.00 25.00 48.00 5.90 48.23 $ 41.90 $ 121.23 Product A Product B 55.00 $ 220.00 (35.96) (102.94) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? 48.23 3.2 What is the gross profit per unit? Market price Manufacturing cost per unit Gross profit(loss) per unit Product A Product B $ 55.00 $ 220.00 (35.96) (102.94) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Gross profit(loss) per unit Units purchased per customer Product A Product B Gross profit (loss) per customer 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 Profit (loss) per customer Product A Product B 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