Appendix C Homework A Saved Help Save & Exit Submit Check my work 11 The following data are for the two products produced by Shakti Company. 01:36:12 Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $13 per unit 0.3 DLH per unit 0.3 MH per unit 100 batches 12,000 units 25 modifications 800 customers $30 per unit Product B $22 per unit 1.4 DLH per unit 1.4 MH per unit 200 batches 4,000 units 75 modifications 1,000 customers $115 per unit eBook The company's direct labor rate is $25 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $ 23,000 Engineering modifications 64,400 Machine hours 82,800 Batches 117,000 Number of customers Required: 1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. 1.2 What is the 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? 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? 3.1 Determine the manufacturing cost per unit of each product line using ABC. 3.2 What is the gross profit per unit? 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? 4.2 is the gross profit adequate for each customer of Product A and B using ABC? 5. Which method of product costing gives better information to managers of this company