Question: first half is complete, 3-5 need help The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine
first half is complete, 3-5 need help


The following data are for the two products produced by Tadros Company. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Product A $13 per unit 0.4 DLH per unit 0.3 MH per unit 120 batches 10,000 units 10 modifications 500 customers Product B $27 per unit 1.4 DLH per unit 1.0 MH per unit 240 batches 2,000 units 50 modifications 400 customers $ 95 per unit per unit Market price $35 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 Nonmanufacturing Customer service $ 24,500 Engineering modifications 20,000 Machine hours 42,000 Batches 72,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amo indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs Direct labor hours Overhead Assigned $ 86,500 $ 12.72 per direct labor hour 6,800 Activity Plantwide OH rate Total Overhead Cost Driver 4,000 $ 12.72 $ 2,800 $ 12.72 $ 35,616 Units Produced OH Cost per unit $ 5.09 Product A 50,880 10,000 Product B 2,000 $ 17.81 Product A Product B Total manufacturing cost per unit: Direct material cost per unit $ 13.00 $ 27.00 Direct labor cost per unit 8.00 28.00 Overhead cost per unit 5.09 17.81 Total manufacturing cost $ 26.09 $ 72.81 1.2 What is the gross profit per unit? Product A Product B Market price $ 35.00 $ 95.00 Manufacturing cost per unit (26.09) (72.81) Gross profit per unit 8.91 $ 22.19 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 $ 8.91 $ 22.19 Units purchased per customer 20 Gross profit per customer $ 178.20 $ 110.95 2.2 What is the cost of providing customer service to each customer? Customer service costs $ 72,000 $ 80.00 per customer Number of customers 900 Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A 178.20 Product B 110.95 $ $ Gross profit per customer Customer service cost per customer 80.00 80.00 Profit (loss) per customer $ 98.20 $ 30.95 Is the profit adequate? Yes Yes 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support 0 Electricity Setup 02 Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Engineering support Electricity Setup $ 0 Product B Engineering support Electricity Setup $ 0 Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (24.01) (83.21) 4.1 How much gross profit generated by each customer of Product A and Product B using ABC? Product A Product B 0 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? 5. Which method of product costing gives better information to managers of this company? Activity-based costing method Departmental overhead rate method O Plantwide overhead rate method
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