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