The following data are for the two products produced by Tadros Company PROBLEM SETA Product A Product B Direct materials. Direct labor hours... Machine hours Batches Volume Engineering modifications .. Number of customers...... Market price..... $15 per unit 0.3 DLH per unit 0.1 MH per unit 125 batches 10,000 units 12 modifications 500 customers $30 per unit $24 per unit 1.6 DLH per unit 1.2 MH per unit 225 batches 2.000 units 58 modifications 400 customers $120 per unit Problem 17-1A Comparing costs using ABC with the plantwide overhead rate A1 A2 P1 P3 The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $24,500 Engineering modifications Electricity 34,000 Machine hours Setup costs 52,500 Batches Nonmanufacturing Customer service........... 81,000 Number of customers Required 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct laborCheck Product $26 37 hours. What is the gross profit per unit? 2. How much gross profit is generated by each customer of Product A using the plantwide overhead rate? How much gross profit is generated by each customer of Product B using the plantwide overhead rate? 31 Product A52430 3. What is the cost of providing customer service to each customer? 4. Determine the manufacturing cost per unit of each product line using ABC. What is the gross profit per unit? 5. How much gross profit is generated by each customer of Product A using ABC? How much gross profit is generated by each customer of Product B using ABC? Is the gross profit per customer adequate? Is the gross profit per customer for each of these products greater than the cost of providing customer service