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The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number
The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $20 per unit 0.5 DL per unit 0.4 Mil per unit 200 batches 16,000 unita 18 modifications 800 custom $55 per unit Product $25 per unit 1.5 DL per unit 1.2 M per unit 360 batche 3,600 unita 82 modifications 720 custome $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Engineering support Electricity Setup costs Normanufacturing Customer service Coats $ 53,600 Engineering modifications Driver 42,880 Machine hours 171,520 Batches 144,400 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 Assigned Product A Activity Driver Plantwide OH rate Total Overhead Cost OH Cost per Units Produced unit Product B 1.2 What is the gross profit per unit? Market price Product A Product B Product A Product B Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Product A Gross profit per unit Units purchased per customer Gross profit per customer 2.2 What is the cost of providing customer service to each customer? Product B Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Gross profit per customer Product A Product B Customer service cost per customer Profit (loss) per customer Is the profit adequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Overhead Assigned Activity Driver Activity rate Total Overhead Cest Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup Total manufacturing costs Product A Product B 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 Product A Product B (36.03) (102.64) 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
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