60.1K

Verified Solution

Link Copied!

The following data are for the two products produced by Tadros Company.

	Product A		Product B
Direct materials	$	15 per unit	$	27 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		120 batches		240 batches
Volume		10,000 units		2,000 units
Engineering modifications		11 modifications		55 modifications
Number of customers		500 customers		400 customers
Market price	$	35 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 support		$	26,500		Engineering modifications
Electricity			31,000		Machine hours
Setup costs			41,000		Batches
Nonmanufacturing
Customer service			72,000		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.)

1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours Overhead costs 0 Direct labor hours Activity Driver OH Cost per unit Overhead Assigned Product A Product B Plantwide OH rate Total Overhead Cost Units Produced Product A Product B 1.2 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

Answer & Explanation Solved by verified expert

See Answer