Question: Comparing costs using ABC with the plantwide overhead rate A1 A2 P1 P3. Wade Company makes two distinct products, with the following information available for

Comparing costs using ABC with the plantwide overhead rate A1 A2 P1 P3.

Wade Company makes two distinct products, with the following information available for each.

Standard Deluxe
Direct materials $4 per unit $8 per unit
Direct labor hours 4 DLH per unit 5 DLH per unit
Machine hours 3 MH per unit 3 MH per unit
Batches 175 batches 75 batches
Volume 40,000 units 10,000 units
Engineering modifications 50 modifications 25 modifications
Number of customers 1,000 customers 1,000 customers
Market price $92 per unit $125 per unit

The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.

Costs Driver
Indirect manufacturing
Engineering support $56,250 Engineering modifications
Electricity 112,500 Machine hours
Setup costs 41,250 Batches
Nonmanufacturing
Customer service 250,000 Number of customers

Determine the manufacturing cost per unit of each product line using ABC. What is the gross profit per unit?

Please show work too thanks.

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