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. Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $20 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units 18 modifications 800 customers $55 per unit Product B $25 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 82 modifications 720 customers $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $ 53,600 Engineering modifications Electricity 42,880 Machine hours Setup costs 171,520 Batches Nonmanufacturing Customer service 129,200 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.) (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. Overhead costs 0 Direct labor hours Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced Product A Product B OH Cost per unit Product A Product B 1.2 What is the gross profit per unit? Product A Product B Market price Gross profit per unit 2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rato? Product Product B Gross profit per unit Units purchased per customer
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