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 $ 27 per unit Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price $13 per unit 0.3 DLH per unit 0.2 MH per unit 105 batches 10,000 units 10 modifications 500 customers 1.5 DLH per unit 1.1 MH per unit 210 batches 2,000 units 50 modifications 400 customers $ 36 per unit $ 95 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows Costs Driver Indirect manufacturing Engineering support23,000 Engineering modifications Electricity 16,800 Machine hours 40,000 Batches Setup costs Nonmanufacturing Customer service 71,000 Number of customers
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