1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours.
Overhead Assigned	Activity Driver	Plantwide OH rate	Total Overhead Cost	Units Produced	OH Cost per unit
Product A
Product B
		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?
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
Product A
Engineering support
Electricity
Setup
Product B
Engineering support
Electricity
Setup
Total manufacturing costs		Product A	Product B
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
		(22.57)	(86.57)
4.1 How much gross profit is generated by each customer of Product A and Product B using ABC?
		Product A	Product B
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?

The following data are for the two products produced by Tadros Company. ProductA 14 per unit 0.3 DLH per unit 0.2 MH per unit 120 batches 10,000 units 11 modifications 500 customers 36 per unit Product B $ 28 per unit Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price 1.5 DLH per unit 1.1 MH per unit 240 batches 2,000 units 55 modifications 400 customers $ 95 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows Costs Driver Indirect manufacturing $ 26,000 Engineering modifications Engineering support Electricity Setup costs 16,800 Machine hours 40,000 Batches Nonmanufacturing Customer service 73,000 Number of customers