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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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