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

The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $15 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units 18 modifications 600 customers $55 per unit Product B $30 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 82 modifications 500 customers $220 per unit The company's direct labor rate is $27 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $ 53,600 Engineering modifications 42,880 Machine hours 171,520 Batches 93,500 Number of customers 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs $ 268,000 $ 20.00 per direct labor hour Direct labor hours 13,400 Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit $ 10.00 160,000 16,000 Product A Product B 8,000 $ 5,400 $ 20.00 $ 20.00 $ 108,000 3,600 $ 30.00 Product B 30.00 $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Product A 15.00 $ 0.50 1.50 10.00 30.00 Total manufacturing cost $ 25.50 $ 61.50 55.00 $ 1.2 What is the gross profit per unit? Product A Product B Market price $ 220.00 Manufacturing cost per unit (25.50) (61.50) Gross profit per unit $ 29.50 $ 158.50 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 $ 29.50 $ 158.50 Units purchased per customer 27 7 Gross profit per customer $ 1.109.50 2.2 What is the cost of providing customer service to each customer? Customer service costs 93,500 $ 85.00 per customer Number of customers 1,100 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 $ 796.50 $ 1,109.50 Customer service cost per customer 85.00 Profit (loss) per customer $ 711.50 1,024.50 Is the profit adequate? 796.50 85.00 $ Yes Yes Product A Product B $ 15.00 $ 30.00 Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit 0.50 6.03 1.50 47.64 Total manufacturing cost per unit $ 21.53 $ 79.14 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 $ 23.97 $ 112.36 Units purchased per customer 27 7 Gross profit (loss) per customer $ 647.19 $ 786.52