Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started