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 Product B Direct materials $ 15 per unit $ 25 per unit Direct labor hours 0 4 DLH per unit 1 6 DLH per unit Machine hours 0 3 MH per unit 1 2 MH per unit Batches 110 batches 220 batches Volume 10,000 units 2,000 units Engineering modifications 9 modifications 45 modifications Number of customers 500 customers 400 customers Market price $ 35 per unit $ 95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH) Additional information follows Costs Driver Indirect manufacturing Engineering support $ 23,500 Engineering modifications Electricity 27,000 Machine hours Setup costs 40,000 Batches Nonmanufacturing Customer service 70,000 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 )

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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		Product B
Direct materials	$	15 per unit	$	25 per unit
Direct labor hours		0.4 DLH per unit		1.6 DLH per unit
Machine hours		0.3 MH per unit		1.2 MH per unit
Batches		110 batches		220 batches
Volume		10,000 units		2,000 units
Engineering modifications		9 modifications		45 modifications
Number of customers		500 customers		400 customers
Market price	$	35 per unit	$	95 per unit per unit

The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.

	Costs		Driver
Indirect manufacturing
Engineering support	$	23,500	Engineering modifications
Electricity		27,000	Machine hours
Setup costs		40,000	Batches
Nonmanufacturing
Customer service		70,000	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.)

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