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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

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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 $14 per unit 0.5 DLH per unit 0.4 MH per unit 95 batches 10,000 units 10 modifications 500 customers $34 per unit Product B $25 per unit 1.6 DLH per unit 1.2 MH per unit 190 batches 2,000 units 50 modifications 400 customers $95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional informa Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $25,000 Engineering modifications 32,000 Machine hours 42,000 Batches 72,000 Number of customers Required: 1 Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts s indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs Direct labor hours Overhead Assigned Activity OH Cost per Plantwido OH rate Total Overhond Cost Units Produced Driver Product A+ Product B unit 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 2.2 What is the cost of providing customer service to each customer? 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 Customer service cost per customer Profit (loss) per customer Is the profit adequate? Help Sa 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Activity Driver Activity rate Total Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup Product B Engineering support Flortrinh HUP Product B Engineering support Electricity Setup Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead perunt Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (27.82) (87.42) 4.1 How much gross profit is generated by each customer of Product A and Product Busing ABC? Product A Product B 4.1 How much gross profit is generated by each customer of Product A and Product Busing ABC? Product A Product B Units purchased per customer Gross profit (loss) per customer 4.2 is the gross profit adequato 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 (los) per customer Is the profit adequate using ABC? 5. Which method of product costing gives better information to managers of this company? O Plantwide overhead rate method O Activity-based costing method O Departmental overhead rate method

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