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The following data are for the two products produced by Tadros Company Product B Product A Direct materials Direct labor hours Machine hours Batches Volume
The following data are for the two products produced by Tadros Company Product B Product A Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price $24 per unit 15 per unit 0.3 DLH per unit 0.1 MH per unit 125 batches 10,000 units 12 modifications 500 customers 1.6 DLH per unit 1.2 MH per unit 225 batches 2,000 units 58 modifications 400 customers $30 per unit $120 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 Setup costs $24,500 Engineering modifications 34,000 Machine hours 52,500 Batches Nonmanufacturing Customer service 81,000 Number of customers Required: Loss amounts should be indicated with minus sign. Round your per unit cost answers to 2 decimal places.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Activity Driver OH Cost per unit Overhead Assigned Product A Product B Plantwide OH rate Total Overhead CostUnits Produced 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 rate? Product A Product B Gross profit per unit Units purchased per customer Gross profit per customer Total Overhead Cost Overhead Assigned Activity Driver Activity rate Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup Product A Product B Total manufacturing costs 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 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 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
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