Question: 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

 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 $15 per unit 0.5 DLH
per unit 0.4 MH per unit 110 batches 10,000 units 9 modifications
500 customers $35 per unit Product B $25 per unit 1.4 DLH
per unit 1.0 MH per unit 220 batches 2,000 units 45 modifications

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 $15 per unit 0.5 DLH per unit 0.4 MH per unit 110 batches 10,000 units 9 modifications 500 customers $35 per unit Product B $25 per unit 1.4 DLH per unit 1.0 MH per unit 220 batches 2,000 units 45 modifications 400 customers $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 Electricity Setup costs Nonmanufacturing Customer service $25,500 Engineering modifications 30,000 Machine hours 44,000 Batches 75,000 Number of customers Required: e 1 of 4 Next > (Round your per unit cost answers to 2 decimal places and other answers to nearest whole num indicated with minus sign.) amounts should be 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Driver Plantwide of rate Total Overhead Cost SZ Units Produced - Overhead Assigned Product A Product B _ TE SELE LES _ Product A Product B 1.2 What is the gross profit per unit? Product A Product B. of 4 Next > 00 12 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 rate? Product A Product B Gross profit per unit Units purchased per customer Gross profit per customer 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer is the profit adequate? 3.1 Determine the manufacturing onstner unit of each product of 4 Next > sure po autyua 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup up Overhead Assigned Activity Driver Activity rate Total Overhead Cost Product A Engineering support Electricity Setup Product B Next > Product B Engineering support Electricity Setup Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price 28.89) (8329) 4. How much gross profit is generated by each customer of Product A and Product Busing ABC? Dendant 1 of 4 Market price (28.89) (83.29) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B Units purchased per customer Gross profit (loss) per customer 4.2 Is the gross profit adequate for each customer of Product A and B using ABC? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? 1 of 4 Next >

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