PROBLEM SET B Wade Company makes two distinct products, with the following information available for each. Standard Deluxe roblem 17-18 comparing costs using BC with the plantwide werhead rate A2 P1 P3 Direct materials .. . Direct labor hours ....... ....... Machine hours... Batches. Volume .. Engineering modifications ...... Number of customers........ Market price..... $4 per unit 4 DLH per unit 3 MH per unit 175 batches 40,000 units 50 modifications 1.000 customers $92 per unit $8 per unit 5 DLH per unit 3 MH per unit 75 batches 10.000 units 25 modifications 1,000 customers $125 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support ........... Electricity .... . Setup costs............ .. Nonmanufacturing Customer service............... $ 56,250 112,500 41.250 Engineering modifications Machine hours Batches 250,000 Number of customers nt Standard, $380, Deluxe 1280 Required 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on machine hours. What is the gross profit per unit? 2. How much gross profit is generated by each customer of the standard product using the plantwide overhead rate? How much gross profit is generated by each customer of the deluxe product using the plantwide overhead rate? What is the cost of providing customer service to each customer information is provided by this comparison? 3. Determine the manufacturing cost per unit of each noduct line usine ABC. What is the per unit? 3) Gross profit per unit Sundard $409, Deluxe 511.64