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Business, 17.06.2020 21:57 mario65

The following data are for the two products produced by Tadros Company. Product AProduct BDirect materials$15 per unit$24 per unitDirect labor hours0.3 DLH per unit1.6 DLH per unitMachine hours0.1 MH per unit1.2 MH per unitBatches125 batches225 batchesVolume10,000 units2,000 unitsEngineering modifications12 modifications58 modificationsNumber of customers500 customers400 customersMarket price$30 per unit$120 per unitThe company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. CostsDriverIndirect manufacturing Engineering support$24,500Engineering modificationsElectricity34,000Machi ne hoursSetup costs52,500BatchesNonmanufacturing Customer service81,000Number of customers1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours.1.2 What is the 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?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?3.1 Determine the manufacturing cost per unit of each product line using ABC.3.2 What is the gross profit per unit?4.1 How much gross profit is generated by each customer of Product A and Product B using ABC?4.2 Is the gross profit adequate for each customer of Product A and B using ABC?5. Which method of product costing gives better information to managers of this company?a. Plantwide overhead rate methodb. Departmental overhead rate methodc. Activity-based costing method

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