Question: lem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2 The following data are for the two products produced
lem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2 The following data are for the two products produced by Tadros Company -$ 14 per unit $27 per unit Direct labor hours Machine hours 0.6 DLH per unit 1.5 DLH per unit 0.5 MH per unit 1.1 MH per unit 115 batches 10,000 units 230 batches 2,000 units modifications 9 modifications 45 modifications Number of customers Market price 500 customers 400 customers 35 per unit $95 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows CostsDriver ct manufacturing Engineering support Electricity Setup costs 23,500 Engineering modifications 36,000 Machine hours 40,000 Batches onmanufacturing 71.000 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss amounts should be indicated with minus sign) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
