The following data are for the two products produced by Shakti Company Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $10 per unit 2.2 DLH per unit 0.2 MH per unit 180 batches 10,500 units 12 modifications 700 customers $25 per unit Product B $19 per unit 1.2 DLH per unit 1.4 MH per unit 200 batches 3.000 units 70 modifications 5e9 customers $100 per unit The company's direct labor rate is $25 per direct labor hour (DLH). Additional information follows. Costs Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $24,600 44,1ee 68,189 Driver Engineering modifications Machine hours urs Batches 96,000 Number of customers Required: 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the 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? 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? 3.1 Determine the manufacturing cost per unit of each product line using ABC 3.2 What is the gross profit per unit? 1.1 compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the gross profit per unit? (Losses per unit and losses per customer should be indicated with a minus sign. Round your intermediate calculations and round OH rate and cost per unit answers to 2 decimal places.) Show less 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $ 136,800 24.00 per direct labor hour Direct labor hours 5,700 Activity Plantwide OH Overhead Assigned Total Overhead Units Produced Cost Product A 2,100 $ 24.00 $ 50,400 10,500 Product B 3,600S 24.00 86,400 Driver OH Cost per unit 4.80 $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost Product A 10.00 2.00 4.80 16.80 Product B 19.00 12.00 28.80 59.80 s $ 1.2 What is the gross profit per unit? Product B 100,00 Market price Manufacturing cost per unit Gross profit per Product A 25.00 (16.80) 8.20ls (59.80) 40.20 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? (Losses per unit and losses per customer should be indicated with a minus sign. Round your Intermediate calculations and round OH rate and cost per unit answers to 2 decimal places.) Show less A 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Product Product B Gross profit per unit 8.20 $ $ 40.20 X Units purchased per customer 156 Gross profit per customer 123.00 $ 241.20 X 2.2 What is the cost of providing customer service to each customer? Customer service costs $ 96,000 $ 80.00 per customer Number of customers 1,200 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 123.00 $ 241.20 Customer service cost per customer 80.00 80.00 43.00 $ Profit (loss) per customer 161.20 X Is the profit adequate? Yes Yes 82 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Overhead costs $ 24,600 $ 300.00 per modification Number of modifications Electricity $ 44,100 700.00 per machine hour Number of machine hours 63% Setup Overhead costs $ 68,100 $ 56.75 per batch Number of batches 1,200 Activity Driver Activity rate Total Overhead Cost S 12 161 100 modifications machine hours batches 300.00 700.00 56.75 per modification per machine per batch Overhead Assigned Product A Engineering Support Electricity Setup Total overhead costs assigned Total units produced Overhead cost per unit Product B Engineering Support Electricity 360 112,700 5,675 118,735 10,500 11.31% $ 21,000 70 4,200 modifications machine hours 300.00 700.00 per modification per machine hour 2,940,000 100 batches 56.75 per batch $ 5,675 118,735 10,500 11.31% Setup Total overhead costs assigned Total units produced Overhead cost per unit Product B Engineering Support Electricity Setup Total overhead costs assigned Total units produced 21,000 70 4,200 200 modifications machine hours 300.00 700.00 56.75 per modifications per machine hour per batch batches 2,940,000 11,350 2,972,350 300 9,907.83 Overhead cost per unit $ $ Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Product A 10.00 2.00 11.31 23.31 Product B 19.00 12.00 9,907.83 9,938.83 3.2 What is the gross profit per unit? Market price Manufacturing cost per unit Gross profit(loss) per unit Product A 25.00 (23.31) 1.69 Product B 100.00 (9,938.83) (9,838.83) $ 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? (Losses per unit and losses per customer should be indicated with a minus sign. Round your intermediate calculations and round OH rate and cost per unit answers to 2 decimal places.) Show less 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 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 and B using ABC? Product A Product B Gross profit (loss) per customer Service cost per customer Gross profit (loss) per customer Is the profit adequate using ABC? Required: 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the 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? 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A an B using the plantwide overhead rate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. 3.2 What is the gross profit per unit? 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? 4.2 is the gross profit adequate for each customer of Product A and Busing ABC? 5. Which method of product costing gives better information to managers of this company? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Which method of product costing gives better information to managers of this company? Which method of product costing gives better information to managers of this company