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The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Product A $20 per unit

The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Product A $20 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 80 modifications Volume Engineering modifications Number of customers 20 modifications 800 customers 720 customers Market price $50 per unit $200 per unit Costs The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Driver Engineering support $ 53,600 Electricity Setup costs 42,880 171,520 Engineering modifications Machine hours Batches Nonmanufacturing Customer service 136,800 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 Product B Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit 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 Customer service cost per customer Profit (loss) per customer Is the profit adequate? Product A Product B 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Overhead Assigned Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup Activity Driver Activity rate 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? Product A Product B Market price (36.10) (102.34) 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 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 Total Overhead Costimage text in transcribedimage text in transcribed

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