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 $ 14 per unit $ 25 per unit Direct labor hours 0 5 DLH per unit 1 5 DLH per unit Machine hours 0 4 MH per unit 1 1 MH per unit Batches 115 batches 230 batches Volume 10,000 units 2,000 units Engineering modifications 10 modifications 50 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 31,000 Machine hours Setup costs 44,000 Batches Nonmanufacturing Customer service 75,000 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	$	14 per unit	$	25 per unit
Direct labor hours		0.5 DLH per unit		1.5 DLH per unit
Machine hours		0.4 MH per unit		1.1 MH per unit
Batches		115 batches		230 batches
Volume		10,000 units		2,000 units
Engineering modifications		10 modifications		50 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		31,000	Machine hours
Setup costs		44,000	Batches
Nonmanufacturing
Customer service		75,000	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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