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 $14 per unit 0.5 DLH per unit 0.4 MH per unit 100 batches 10.000 units 9 modifications 500 customers 536 per unit $25 per unit 1.5 DLH per unit 1.1 MH per unit 200 batches 2.000 units 45 modifications 400 customers ,95 per unit per The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Indirect manufacturing Engineering support Electricity Setup costs Normanufacturing Customer service 525.000 Engineering modifications 24.800 Machine hours 43.000 Batches 70,000 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 costs Direct labor hours Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per Product A Product B educt Product 1-2 What is the gross profit per unit? Products Market price 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? Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A and Product Busing the plantwide overhead rate? Product A Product B 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? OP Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product Product B 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 each product line using ABC. Engineering Support Electricity Setup 0 Overhead Assigned Activity Driver Activity rate Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup Product A Product B Total manufacturing costs 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 Product B Engineering support Electricity Setup Product A Product B Total manufacturing costs 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 Product B Market price (27.45) (84.15) 4.1 How much gross profit is generated by each customer of Product A and Product Busing ABC? Product Product B Units purchased per customer Gross profit (loss) per customer 4.2 is the gross profit adequate for each customer of Product A and B using ABC? Product Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? 5. Which method of product costing gives better information to managers of this company? Plantwide overhead rate method Activity-based costing method Departmental overhead rate method
