Exercise 17-10 Using ABC for strategic decisions LO P1, P3

Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places)

	Product A	Product B
Number of units produced	12,500 units	1,800 units
Direct labor cost (@ $25 per DLH)	0.17 DLH per unit	0.30 DLH per unit
Direct materials cost	$ 1.60 per unit	$ 2.70 per unit

Activity	Overhead costs
Machine setup		$	116,085
Materials handling			59,000
Quality control inspections			62,100
		$	237,185