The following data are for the two products produced by Tadros Company. Product B Product A $14 per unit 0.5 DLH per unit 0.4 MH per unit $25 per unit 1.4 DLH per unit 1.0 MH per unit 190 batches Direct materials Direct labor hours Machine hours Batches 95 batches Volume 10,000 units 11 modifications 2,000 units 55 modifications Engineering modifications Number of customers 500 customers 400 customers Market price $36 per unit $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 support Electricity $24,500 Engineering modifications 24,000 41,000 Machine hours Setup costs Nonmanufacturing Batches Customer service 70,000 Number of customers Required: 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 0 per direct labor hour Direct labor hours Activity OH Cost per Total Overhead Cost Overhead Assigned Plantwide OH rate Units Produced Driver it Product A Product B Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Gross profit per unit 2.1How 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? 0 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 Electricity Setup 0 Total Overhead Assigned Activity Driver Activity rate Overhead Cost Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup S Total manufacturing costs Product A Product B Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup 0 Total Overhead Assigned Activity Driver Activity rate Overhead Cost Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup S Total manufacturing costs Product A Product B 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 Market price (27.38) (80.87) 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
