Question

Saved 17 Practice i Direct materials Direct labor hours Machine hours Batches Volume Engineering modifications Number of customers Market price Product A $15 per unit 0.5 DLH per unit 0.4 MH per unit 200 batches 16,000 units 2e modifications 800 customers $55 per unit Product B $30 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 80 modifications 700 customers $220 per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional Information follows. inces Costs Driver Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service $ 53,600 Engineering modifications 53,600 Machine hours 160,800 Batches 142,500 Number of customers Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Loss indicated with minus sign.) 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours.

Answer 1

Overhead costs (53600+53600+160800)	268000
Direct labor hours (16000*0.5)+(3600*1.5)	/ 13400
Overhead cost per direct labor hour	20

Overhead assigned	Activity driver	Plant OH rate	Plant OH cost	Units produced	OH cost per unit
Product A 16000*0.5	8000	20	160000	16000	10
Product B 3600*1.5	5400	20	108000	3600	30

	Product A	Product B
DM cost per unit	15	30
Dl cost per unit (20*0.5),(20*1.5)	10	30
OH cost per unit	10	30
Total manufacturing cost	35	90