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 Direct materials Direct labor hours Machine hours $14 per unit $26 per unit 0.5 DLH per unit 0.4 MH per unit 95 batches 10,000 units 1.5 DLH per unit 1.1 MH per unit 190 batches 2,000 units Batches Volume Engineering modif ications Number of customers modifications modifications 500 customers 400 customers $95 per unit per unit Market price $35 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information fo Costs Driver Indirect manufacturing Engineering support Electricity Setup costs $25,500 modifications 24,800 Machine hours 43,000 Batches Nonmanufacturing Number of Customer service 72,000 customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest wholer 1 of 1

Explanation / Answer

Solution 1.1:

Solution 1.2 and 2.1:

Solution 2.2 and 2.3:

Solution 3.1:

Solution 3.2 and 4.1:

Solution 4.2:

Computation of overhead rate and Overhead assignment to product - (Plantwide overhead rate) Particulars Product A Product B Total Direct labor hours per unit 0.5 1.5 Volume (In Units) 10000 2000 Direct Labor hours 5000 3000 8000 Manufacturing overhead $93,300.00 Overehead rate - Per direct labor hour (Manufacturing overhead/Direct labor hour) $11.66 Overhead allocation $58,313 $34,988 $93,300 Overhead cost per unit $5.83 $17.49

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