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The following data are for the two products produced by Tadros Company. Product A Direct materials $14 per unit Direct labor hours 0.4 DLH per
The following data are for the two products produced by Tadros Company. Product A Direct materials $14 per unit Direct labor hours 0.4 DLH per unit Machine hours 0.3 MH per unit Batches 100 batches Volume 10,000 units Engineering modifications 11 modifications Number of customers 500 customers Market price $36 per unit Product B $26 per unit 1.5 DLH per unit 1.1 MH per unit 200 batches 2,000 units 55 modifications 400 customers $ 95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering Engineering support $24,000 modifications Electricity 20,800 Machine hours Setup costs 41,000 Batches Nonmanufacturing Customer service 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. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product A 14.00 Direct material cost per unit $ 1.2 What is the gross profit per unit? Product A Market price Manufacturing cost per unit (14.00) Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A 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? Is the gross profit adequate for each customer of Product A using the plantwide overhead rate? Product A Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? 3.1 Determine the manufacturing cost per unit of Product A using ABC. Engineering Support Electricity Setup 0 Activity Driver Activity rate Overhead Assigned Product A Total Overhead Cost Activity Driver Activity rate Total Overhead Cost $ 0 Overhead Assigned Product A Engineering support Electricity Setup Total overhead costs assigned Total units produced Overhead cost per unit Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Product 3.2 What is the gross profit per unit? Product A Market price Manufacturing cost per unit (24.97) Gross profit (loss) per unit 4.1 How much gross profit is generated by each customer of Product A using ABC? Product A Gross profit (loss) per unit Units purchased per customer Gross profit (loss) per customer 4.2 Is the gross profit adequate for each customer of Product A using ABC? Product A Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC
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