3-4?

Problem 4-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2 The following data are for the two products produced by Tadros Company Product A Product B Direct materials $13 per unit $24 per unit 0.4 DLH per unit 0.3 MH per unit 125 batches 10,000 units 1.6 DLH per unit 1.2 MH per unit 250 batches 2,000 units Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers modifications modifications 500 customers400 customers 95 per unit per unit Market price $36 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 Engineering $24,000 modifications 27,000 Machine hours 43,000 Batches Nonmanufacturing Customer service73,000 Number of customers Renuired: 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours Overhead costs $ 94,000S 13.06 per direct labor hour Direct labor hours 7,200 Activity Driver OH Cost per unit Overhead Assigned Plantwide OH rate Total Overhead Cost 52,240 41,792 Units Produced Product A 4,000 $ 13.06$ 10,000 5.22 Product B 3.200 $ 13.06S 2,000$ 20.89 Product B 24.00 32.00 20.89 76.89 Total manufacturing cost per unit Product A 13.00 $ Direct material cost per unit Direct labor cost per unit Overhead cost per unit 8.00 5.22 Total manufacturing cost 26.22S$ 1.2 What is the gross profit per unit? Product A Product B 95.00 (76.89) 18.11 36.00$ Market price Manufacturing cost per unit (26.22) Gross profit per unit 9.78 $ 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 9.78 $ 18.11 20 Gross profit per customer 195.60 $ 90.55 2.2 What is the cost of providing customer service to each customer? 73.000 S Customer service costs Number of customers 81.11 per customer 900 Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B 195.60 $ Gross profit per customer Customer service cost per customer 90.55 81.11 114.49$ 9.44 Profit (loss) per customer Is the profit adequate? Yes Yes 1 Determine the manufacturing cost per unit of each product line using ABC Engineering Support Overhead costs $ 24.000$ 363.64 per modification Number of modifications Electricity Overhead costs $ 27.000S .00 per machine hour 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