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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 $ 26 per

The following data are for the two products produced by Tadros Company.

Product A Product B
Direct materials $ 15 per unit $ 26 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 125 batches 250 batches
Volume 10,000 units 2,000 units
Engineering modifications 10 modifications 50 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 $ 23,500 Engineering modifications
Electricity 24,800 Machine hours
Setup costs 41,000 Batches
Nonmanufacturing
Customer service 72,000 Number of customers

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Indicated with minus sign.) Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Activity Plantwide OH Cost per unit erhead Assigned OH rate Total Overhead Cost Units Produced Driver 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 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead 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? s 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 s the profit adequate

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