Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Number of customers
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 $14 per unit. 0.4 DLH per unit 0.3 MH per unit 115 batches 10,000 units 9 modifications 500 customers $35 per unit Product B $26 per unit 1.5 DLH per unit 1.1 MH per unit 230 batches 2,000 units 45 modifications 400 customers $95 per unit 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 Nonmanufacturing Customer service Costs Driver $26,000 Engineering modifications 20,800 Machine hours 43,000 Batches 72,000 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. OH Cost per Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced unit Product A 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? Product A Product A Market price Manufacturing cost per unit Gross profit per unit 0.00 2.1 How much gross profit is generated by each customer of Product A using the plantwide overhead rate? Gross profit per unit Units purchased per customer Gross profit per customer Product A
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