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what is the answer for 1-5 Appendix C Activity-Based Costing lowing data are for the two products produced by Shakti Company. Product A Produc: B
what is the answer for 1-5
Appendix C Activity-Based Costing lowing data are for the two products produced by Shakti Company. Product A Produc: B Dlrect labor hours Machine hours Batches olume Engineering modifications Number of customers Market price $15 per unil 0.3 DLH per uni 0.1 MH per unit 125 batches 10,000 units 12 modifications 500 custamers $30 per unit $24 per unlt 16DLH der unit 12 MH per n 225 baiches 2,000 units 58 modifications 400 customers $120 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 cost:s $24,500 Engineering modifications 34,000 Machine hours 52,500 Batches Nonmanufacturing 81,000 Number of customers Required 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. What is the gross profit per unit? 2. How much gross profit is generated by each customer of Product A using the plantwide overhead rate? How much gross profit is generated by each customer of Product B using the plantwide overhead rate? What is the cost of providing customer service to each customer? What information is provided by this comparison? 3. Determine the manufacturing cost per unit of each product line using ABC. What is the gross profit per unit? How much gross profit is generated by each customer of Product A using ABC? How much gross profit is generated by each customer of Product B using ABC? Is the gross profit per customer 5. Which method of product costing gives better information to managers of this company? Explain Company produces two beverages, PowerPunch and SlimLife. Data about these products followStep by Step Solution
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