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

Question

The following data are for the two products produced by Tadros Company Product A Product B Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price $14 per unit $26 per unit 0.4 DLH per unit 0.3 MH per unit 110 batches 10,000 units 9 modifications 500 customers 1.5 DLH per unit 1.1 ME per unit 220 batches 2,000 units 45 modifications 400 customers 95 per unit per unit $35 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturind Engineering support Electricity Setup costs $22,500 Engineering modifications 26,000 Machine hours 42,000 Batches Nonmanufacturing Customer service 73,000 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.)

Explanation / Answer

Solution 1:

Solution 2:

Solution 3.1:

Solution 3.2 and 4:

Computation of overhead rate and Overhead assignment to product - (Plantwide overhead rate) Particulars Product A Product B Total Direct labor hours per unit 0.4 1.5 Volume (In Units) 10000 2000 Direct Labor hours 4000 3000 7000 Manufacturing overhead $90,500.00 Overehead rate - Per direct labor hour (Manufacturing overhead/Direct labor hour) $12.93 Overhead allocation $51,714 $38,786 $90,500 Overhead cost per unit $5.17 $19.39

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