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The following data are for the two products produced by Shakti Company. Product A Product B Direct materials $ 12 per unit $ 21 per

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

Product A Product B
Direct materials $ 12 per unit $ 21 per unit
Direct labor hours 0.5 DLH per unit 1.2 DLH per unit
Machine hours 0.1 MH per unit 1.4 MH per unit
Batches 150 batches 250 batches
Volume 12,000 units 3,000 units
Engineering modifications 20 modifications 60 modifications
Number of customers 800 customers 500 customers
Market price $ 35 per unit $ 110 per unit

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

Costs Driver
Indirect manufacturing
Engineering support $ 24,800 Engineering modifications
Electricity 54,000 Machine hours
Setup costs 84,400 Batches
Nonmanufacturing
Customer service 136,500 Number of customers

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Check my work 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the gross profit per unit? (Losses per unit and losses per customer should be indicated with a minus sign. Round your intermediate calculations and round OH rate and cost per unit answers to 2 decimal places.) Show less 2.5 points eBook 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $ 24,800 S 310.00 per batch Number of modifications 80 Overhead Assigned Activity Plantwide OH rate Total Overhead Cost Units Produced Driver Product A Product B Print OH Cost per unit References Product Product B 1.2 What is the gross profit per unit? Product Product B Market price Gross profit per unit Required 1 Required 2 > 20 Check my work 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? 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? (Losses per unit and losses per customer should be indicated with a minus sign. Round your intermediate calculations and round OH rate and cost per unit answers to 2 decimal places.) 2.5 points Show less eBook Pint 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 References 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 Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? Required 1 Required 3 >

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