• Compute the manufacturing cost per unit using the plant-wide overhead rate based on direct labot hours. What is the gross profit per unit?
• How much gross profit is generated by each customer of Product A using the plant-wide overhead rate? How much gross profit is generated by each customer of Product B using the plant-wide overhead rate? What is the cost of providing customer service to each customer? What information is provided by this comparison?
• 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 adequate?
• Which method of product costing gives better information to managers of this company?

The following data are for the two products produced by CPA Company. Product A Product B Direct materials P 15 per unit Direct labor hours .3 DLH per unit Machine hours .1 MH per unit Batches 125 batches Volume 10,000 units Engineering modifications 12 modifications Number of customers 500 customers Market price P 30 per unit P 24 per unit 1.6 DLH per unit 1.2 MH per unit 225 batches 2,000 units 58 modifications 400 customers P 120 per unit The company's direct labor rate is P20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing: Engineering support P 24,500 Engineering modifications Electricity 34,000 Machine hours Setup costs 52,500 Batches Nonmanufacturing: Customer service 81,000 Number of customers REQUIRED: 1. Compute the manufacturing cost per unit using the plant-wide 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 plant-wide overhead rate? How much gross profit is generated by each customer of Product B using the plant-wide 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? 4. 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 adequate? 5. Which method of product costing gives better information to managers of this company