In: Accounting
Consider the following data for two products of Gitano
Manufacturing. (Loss amounts should be indicated with a
minus sign. Round your intermediate calculations and "OH rate and
cost per unit" answers to 2 decimal places.)
Product A | Product B | |
Number of units produced | 10,500 units | 1,800 units |
Direct labor cost (@ $28 per DLH) | 0.17 DLH per unit | 0.21 DLH per unit |
Direct materials cost | $ 1.90 per unit | $ 2.30 per unit |
Activity | Overhead costs | |||
Machine setup | $ | 33,941 | ||
Materials handling | 56,000 | |||
Quality control inspections | 98,240 | |||
$ | 188,181 | |||
Required
|
4.2 Based on your results in part 4, should the
profit or loss per unit for each product influence company
strategy?
No
Yes