In: Accounting
The following data are for the two products produced by Tadros
Company.
Product A | Product B | ||||
Direct materials | $ | 14 per unit | $ | 26 per unit | |
Direct labor hours | 0.3 DLH per unit | 1.6 DLH per unit | |||
Machine hours | 0.2 MH per unit | 1.2 MH per unit | |||
Batches | 115 batches | 230 batches | |||
Volume | 10,000 units | 2,000 units | |||
Engineering modifications | 10 modifications | 50 modifications | |||
Number of customers | 500 customers | 400 customers | |||
Market price | $ | 35 per unit | $ | 120 per unit | |
The company's direct labor rate is $20 per direct labor hour (DLH).
Additional information follows.
Costs | Driver | |||
Indirect manufacturing | ||||
Engineering support | $ | 25,500 | Engineering modifications | |
Electricity | 22,000 | Machine hours | ||
Setup costs | 43,000 | 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.)