UIZ 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 0.6 DLH per unit 0.5 MH per unit 95 batches 10,000 units 11 modifications 500 customers $35 per unit Product B $25 per unit 1.6 DLH per unit 1.2 MH per unit 190 batches 2,000 units 55 modifications 400 customers $95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $24,586 Engineering modifications 29,600 Machine hours 43,000 Batches 70,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. 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 Product A Product B $ 167 100 S 0.91 per direct labor hour 184.000 Driver Plantwide OH rate Total Overhead Cost 120,000 $ 0.915 109,200 64,000 $ 0.91 S 58,240 Units Produced OH Cost per 1 unit 10,000 5 10.92 2.0005 29.12 Product B 25.00 $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Product A 15.00 0.601 10.92 26.52 29.12 55.72 Total manufacturing cost $ S 1.2 What is the gross profit per unit? Product A Product B Market price s 35.00 $ 95.00 Manufacturing cost per unit 26.52) 55.72) Gross profit per unit $ 8.485 39 28 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 proft per unit 39 28 Units purchased per customer 20 Gross profit per customer S 169 605 19640 8.48 VIHS puruldu per Lust 201 Gross profit per customer 169.60 $ 19640 22 What is the cost of providing customer service to each customer? Customer service costs $ 70,000 $ 77.78 per customer Number of customers .900 Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product Product B Gross profit per customer $ 169.60 $ 196,40 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 Setup Overhead Assigned Activity Driver Activity rate Total Overhead Cost $ 2,227 27 per modification 5.92 per machine hour 452.63 per batch 24,500 29,600 43,000 97 100 10,000 9.71 $ Product A Engineering support 11 modifications Electricity 5,000 machine hours Setup 95 batches Total overhead costs assigned Total units produced Overhead cost per unit Product B Engineering support 55 modifications Electricity 2.400 machine hours Setup 190 batches Total overhead costs assigned Total units produced Overhead cost per unit Total manufacturing costs Product A Direct Materials per unit 1500 Direct Labor per unit 0.60 Overhead per unit 971 Total manufacturing cost per unit 25.31 2,22727 per modification 5.92 per machine hour 45263 per batch 122,500 14,208 86,000 222,708 2,000 11135 $ $ Product B 5 $ 3.2 What is the gross profit per unit? $ Market price Manufacturing cost per unit Gross profiloss) per unit Product A Is 35.00 30 84) [5 416 5 Product B 9500 (86 34) 8 66 Product A Product B Market price 35.00 $ 95.00 Manufacturing cost per unit (30.84) (86.34) Gross profit(loss) per unit $ 4.16 $ 8.66 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 4.16 5 8.66 Units purchased per customer Gross profit (loss) per customer 42 Is the gross profit adequate for each customer of Product A and B using ABC? Product 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? Activity-based costing method Departmental overhead rate method Plantwide overhead rate method Required information [The following information applies to the questions displayed below] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records Indirect Labor $370,000 Indirect Materials Other Overhead Production Activity Grinding Polishing Product modification Providing power System.calibration $ 220,000 500,000 $260,000 420,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power Systen calibration 17,000 machine hours 17,000 machine hours 1,600 engineering hours 16,000 direct labor hours 550 batches Job 3175 190 units Job 4286 2,375 units eng. eng. Number of units Machine hours Engineering hours Batches Direct labor hours 32 hours 22 hours 25 batches 440 DLH 75 batches 3,960 DLH 32 Ch. 22 m. Engineering hours Batches Direct labor hours hours 25 batches 440 DLH hours 75 batches 3,960 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration Unit level Unit level Product level Unit level Batch level