Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated...
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Accounting
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round "OH rate and cost per unit" answers to 2 decimal places.)
Product A
Product B
Number of units produced
10,000 units
2,000 units
Direct labor cost(@$24 per DLH)
0.20 DLH per unit
0.25 DLH per unit
Direct materials cost
$ 2 per unit
$ 3 per unit
Activity
Overhead costs
Machine setup
$
121,000
Materials handling
48,000
Quality control
80,000
$
249,000
Manufacturing cost per unit (26.72 (33.90) 32 Prost(loss) per unit (197) S about these two product lines. If ABC is used for assigning costs to products, is the cost per unit for Product A and for Product B? Product A Product B Number of setups required for production Number of parts required Inspecton hours required 10 setupe 12 setupe 1 partunit 40 hours 3 partunit 210 hours Machine setup 0.45 per unit $ 55000S 21,000 Number of setu Overhead costs Materials handling $ 30,000S 48,000 Number of parts 0.83 per unit Overhead costs Quality control Overhead costs 80,000 d Assigned Activity Driver Activity rate l Over Cost Product A Machine setup Materia's handling Quality control $97,800.00 Product B Machine setup Materia's handling Quaity control 66,0000 18,000 0 67,2000 5 151,200.00 manufacturing costs Product A Product B 20,000.00 Direct Materials per unit Direct Labor per unt 8,000.00 20.00 480.00 97,800.00 118,280.00S per unit 151,200 Total manufacturing cost per unit 157.320.00 Determine the profit or loss per unit for each product assuming ABC costing. ProductA Product B Market price 20.00 $ 60.00 cost per unit (118,280.00) 157,320.00)
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