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Homework answers / question archive / The following data are for the two products produced by Tadros Company

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

Accounting

The following data are for the two products produced by Tadros Company.
  Product A      Product B     
  Direct materials $ 13 per unit $ 25 per unit
  Direct labor hours   0.6 DLH per unit   1.5 DLH per unit
  Machine hours   0.5 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 $10 per direct labor hour (DLH). Additional information follows.
  Costs Driver
  Indirect manufacturing          
        Engineering support   $ 22,500   Engineering modifications
        Electricity     28,800   Machine hours
        Setup costs     43,000   Batches
  Nonmanufacturing          
        Customer service     73,000   Number of customers
 

1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours Activity Plantwide oH rate Driver overhead Assigned Total Overhead Cost Units Produced Product A Product B Product A Product B 1.2 What is the gross profit per unit? Product B Product A x Market price x x Gross profit per unit OH Cost per unit

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