Question

Please fix my mistakes

Exercise 17-10 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated with a minus sign. Round "OH rate and cost per unit" answers to 2 decimal places.) Product Products Sumber of units produced 10,000 units 2,000 units Direct labor cost (e $24 per DLH) 0.20 DLH per unit 0.25 DLH per unit Direct materials cost $ 2 per unit $ 3 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $121,000 48.000 80,000 $249,000 Required: Answer is complete but not entirely correct. 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead cost por direct labor $ 249.000 90.60 hour Direct labor hours 2,500 Overhead Assigned Activity Plantwide OH Total Overhead Driver Units Produced OH Cost Cost per unit Product 2.000 $ 99.60 $ 199,200 10,000 $ 19.92 Products 500 $ 99.60 $ 49,800 2,000 $ 24.90 Product B 3.00 $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing out Product A 2.00$ 4.80 19.02 6.00 24.00 33.90 $ 26.72 IS 2. It the market price for Product Als 520 and the market price for Product B is $60, determine the profit or loss per unit for each product.

Answer 1

Answer 3 continuation:

Overhead Assigned	Activity Driver	Activity Rate	Total Overhead Cost
Product A
Machine setup	10	setups	$5500.00	Per setup	$55000
Materials handling	10000	parts	$3.00	Per part	$30000
Quality controll	40	Inspection hours	$320.00	Per inspection hours	$12800
Total overhead costs assigned	$97800
Total units produced	10000
Overhead cost per unit	$9.78
Product B
Machine setup	12	setups	$5500.00	Per setup	$66000
Materials handling	6000	parts	$3.00	Per part	$18000
Quality controll	210	inspection hours	$320.00	Per inspection hour	$67200
Total Overhead costs assigned	$151200
Total units produced	2000
Overhead cost per unit					$75.6

4.

Particulars	Product A	Product B
Market price	$20	$60
Manufacturing cost per unit	(16.58)	(84.6)
Profit (loss) per unit	$3.42	$-24.6