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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 nodifications Number of
The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering nodifications 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 MW 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 information follows. Costa Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Cuntomer service $25,000 Engineering modifications 32,000 Machine hours 42,000 Batches 72,000 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.) 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 modifications machine hours batches 0 Product B Engineering support Electricity Setup $ 0 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 (27.82) (87.42) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 0 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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