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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 DH per unit 0.4 MH per unit 95 batches 10,000 units 10 modifications 500 customers $34 per unit Product 3 $25 per unit 1.6 DLH per unit 1.2 MH per unit 190 batches 2,000 unita 50 modifications 400 customers 95 per unit per Punit The company's direct labor rate is $20 per direct tabor hour (DLH). Additional information follows. Costa Driver Indirect manufacturing Engineering support Electricity Setup costs Nonnanufacturing Customer service $25,000 Engineering modifications 32,000 Machine hours 42,000 Batchen 72,000 Number of customers 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support 0 Electricity 01 + Setup Activity rate Total Overhead Cost Activity Driver Overhead Assigned 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 (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 4.1 How much gross profit is generated by each customer of Product A and Product Busing 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? 5. Which method of product costing gives better information to managers of this company? Plantwide overhead rate method Activity-based costing method

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