Question: PLEASE HELP WITH 3.1, 3.2,4.1,4.2 & 5. THANK YOU! Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price

 PLEASE HELP WITH 3.1, 3.2,4.1,4.2 & 5. THANK YOU! Direct materials

Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers

Market price Product A $15 per unit 0.3 DLH per unit 0.1

PLEASE HELP WITH 3.1, 3.2,4.1,4.2 & 5. THANK YOU!

Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $15 per unit 0.3 DLH per unit 0.1 MH per unit 125 batches 10,000 units 12 modifications 500 customers $30 per unit Product B $24 per unit 1.6 DLH per unit 1.2 MH per unit 225 batches 2,000 units 58 modifications 400 customers $120 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 34,000 Machine hours 52,500 Batches 81,000 Number of customers Required: (Loss amounts should be indicated with minus sign. Round your per unit cost answers to 2 decimal places.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Overhead costs Direct labor hours Overhead Assigned Product A Product B $ 111,000 $ 17.90 per direct labor hour 6,200 Activity Driver Plantwide OH rate Total Overhead Cost 3,000 $ 17.90 $ 53,700 3,200 $ 17.90 $ 57,280 Units Produced 10,000 $ 2,000 $ OH Cost per unit 5.37 28.64 Product B $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost Product A 15.00 $ 6.00 24.00 32.00 5.37 28.64 $ 26.37 $ 84.64 1.2 What is the gross profit per unit? Product B $ 120.00 Market price Manufacturing cost per unit Gross profit per unit Product A 30.00 $ (26.37) 3.63 $ (84.64) 35.36 $ 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 $ 3.63 $ 35.36 Units purchased per customer 20 5 Gross profit per customer $ 72.60 $ 176.80 2.2 What is the cost of providing customer service to each customer? Customer service costs $ 81,000 $ 90.00 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 B 176.80 90.00 86.80 Yes Product A Gross profit per customer $ 72.60 $ Customer service cost per customer 90.00 Profit (loss) per customer $ (17.40) $ Is the profit adequate? No 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Overhead costs 0 Number of modifications Electricity 0 Setup 01 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 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B 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? Method of product costing for better information

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