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The following data are for the two products produced by Tadros Company. Product A Product B Direct materials $ 15 per unit $ 27 per
The following data are for the two products produced by Tadros Company. |
Product A | Product B | |||
Direct materials | $ | 15 per unit | $ | 27 per unit |
Direct labor hours | 0.5 DLH per unit | 1.5 DLH per unit | ||
Machine hours | 0.4 MH per unit | 1.1 MH per unit | ||
Batches | 120 batches | 240 batches | ||
Volume | 10,000 units | 2,000 units | ||
Engineering modifications | 11 modifications | 55 modifications | ||
Number of customers | 500 customers | 400 customers | ||
Market price | $ | 35 per unit | $ | 95 per unit |
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The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. |
Costs | Driver | ||||||
Indirect manufacturing | |||||||
Engineering support | $ | 26,500 | Engineering modifications | ||||
Electricity | 31,000 | Machine hours | |||||
Setup costs | 41,000 | Batches | |||||
Nonmanufacturing | |||||||
Customer service | 72,000 | Number of customers | |||||
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