Question: Problem 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
Problem 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. Product A Direct materials Direct labor hours Machine hours Batches Vol ume Engineering modifications9 modifications Number of customers $15 per unit $28 per unit 0-6 DLH per unit 0.5 MH per unit 110 batches 10,000 unite 1-5 DLH per unit 1.1 MH per unit 220 batches 2,000 units 45 modifications 400 customers 500 customers $34 per unit 95 per unit per Market price unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Cost ver Indirect manufacturing $24,500 Engineering nodificatione Engineering support Electricity Setup costs 28,800 Machine hour, 44,000 Batches Nonmanufegturing Customer sezvice 74,000 umber of custoners Required: (Round your per unit cost answers to 2 declmal places and other answers to nearest whole number. Loss amounts should be indicated with minus sign.) What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer is the profit adequate
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