The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Number of customers
The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Number of customers Product A $15 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 84 modifications 720 customers Engineering modifications 16 modifications 800 customer's Market price $55 per unit $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service Costs $ 53,600 53,600 160,800 Driver Engineering modifications Machine hours Batches. 144,400 Number of customers. 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. < Prev 10 of 10 Next 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Product A Product B 1.2 What is the gross profit per unit? Market price Gross profit per unit Product A Product B Product A Product B 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Gross profit per unit Product A Product B 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate? Gross profit per unit Units purchased per customer Gross profit per customer Product A 2.2 What is the cost of providing customer service to each customer? Product B is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Gross profit per customer Product A Product B 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 Electricity Setup Overhead Assigned Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup Activity Driver Activity rate Total manufacturing costs Product A Product B Total Overhead Cost Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit Product A Product B 3.2 What is the gross profit per unit? Product A Product B Market price (31.13) (102.22) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Units purchased per customer Gross profit (loss) per customer Product A Product B 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Product A Product B Is the profit adequate using ABC? 5. Which method of product costina aives better information to managers of this company?
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Step 33 Total Manufacturing Cost Using ABC Product Direct Materials Direct Labor ABC Overhead Total Manufacturing Cost Per Unit Product A 15 10 492 2992 Product B 25 30 3759 9259 Conclusion Plantwide ...See step-by-step solutions with expert insights and AI powered tools for academic success
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