Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 A $14 per unit 0.5 DLH per unit 0.4 MH per unit 120 batches 10,000 units 9 modifications 500 customers $36 per unit Product B $25 per unit 1.5 DLH per unit 1.1 MH per unit 240 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 $23,000 Engineering modifications 24,800 Machine hours 43,000 Batches 74,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. be indicated with minus sign.) e Pray A (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss an be indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Product A Product B Product A Product B 12 What is the gross profit per unit? + Product A Product B Market price G 18 MacBook Pro f > G Search or type URL R @ A # 3 $ 4 & 2 * % 5 6 7 8 9 o Q W E R T Y U O AS C 5 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Book Product A Product B Print References Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price + 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? ME Prey 1 of 4 Next > 18 MacBook Pro 1 Search or type URL # % & 2 $ 4 3 5 6 7 8 9 2 W E R T Y U S D G H J 2.1 How much gross profit is generated by each customer of Product A and Product B using 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? 02 ok ht Ences Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A 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 0 Electricity 0 Prey 1 of 4 !!! Next > Checkm Electricity of Setup 02 ok Overhead Assigned mt Activity Driver Activity rate Total Overhead Cost nces Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity Setup $ 0 Prey 1 of 4 !!! Next > Ch Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit bok 3.2 What is the gross profit per unit? int Product A Product B Market price ences (27.42) (83.32) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 0 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 A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? No Yes Prey 1 of 4 Next > 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 B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market nie Next > 1 of 4 !!! 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support 0 Electricity 0 of Setup of es Total Overhead Cost Activity rate Activity Driver Overhead Assigned Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity + Next > 1 of 4 !!! Prev |_C1Con&external_browser=0&launchurl=https%253A%252F%252Fnewconnect.mt er 17. Homework i Saved Help Save Product B Engineering support Electricity Setup $ 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit es Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (27.42) (83.32) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product B Check my w 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 0 nts 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? Skipped Product A Product B eBook Print Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? eferences Yes No 5. Which method of product costing gives better information to managers of this company? O Plantwide overhead rate method Departmental overhead rate method Activity-based costing method Next > 1 of 4 !!! Prey w 18 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 A $14 per unit 0.5 DLH per unit 0.4 MH per unit 120 batches 10,000 units 9 modifications 500 customers $36 per unit Product B $25 per unit 1.5 DLH per unit 1.1 MH per unit 240 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 $23,000 Engineering modifications 24,800 Machine hours 43,000 Batches 74,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. be indicated with minus sign.) e Pray A (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss an be indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Product A Product B Product A Product B 12 What is the gross profit per unit? + Product A Product B Market price G 18 MacBook Pro f > G Search or type URL R @ A # 3 $ 4 & 2 * % 5 6 7 8 9 o Q W E R T Y U O AS C 5 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Book Product A Product B Print References Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price + 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? ME Prey 1 of 4 Next > 18 MacBook Pro 1 Search or type URL # % & 2 $ 4 3 5 6 7 8 9 2 W E R T Y U S D G H J 2.1 How much gross profit is generated by each customer of Product A and Product B using 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? 02 ok ht Ences Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A 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 0 Electricity 0 Prey 1 of 4 !!! Next > Checkm Electricity of Setup 02 ok Overhead Assigned mt Activity Driver Activity rate Total Overhead Cost nces Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity Setup $ 0 Prey 1 of 4 !!! Next > Ch Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit bok 3.2 What is the gross profit per unit? int Product A Product B Market price ences (27.42) (83.32) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 0 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 A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? No Yes Prey 1 of 4 Next > 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 B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market nie Next > 1 of 4 !!! 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support 0 Electricity 0 of Setup of es Total Overhead Cost Activity rate Activity Driver Overhead Assigned Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity + Next > 1 of 4 !!! Prev |_C1Con&external_browser=0&launchurl=https%253A%252F%252Fnewconnect.mt er 17. Homework i Saved Help Save Product B Engineering support Electricity Setup $ 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit es Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (27.42) (83.32) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product B Check my w 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 0 nts 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? Skipped Product A Product B eBook Print Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? eferences Yes No 5. Which method of product costing gives better information to managers of this company? O Plantwide overhead rate method Departmental overhead rate method Activity-based costing method Next > 1 of 4 !!! Prey w 18

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions