Question

Need help correcting the answers in red.
Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2 The following data are for the two products produced by Tadros Company. 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 14 modifications 700 customers $55 per unit Product B $30 per unit 1.5 DLH per unit 1.2 MH per unit 360 batches 3,600 units 86 modifications 600 customers $220 per unit The company's direct labor rate is $23 per direct labor hour (DLH). Additional information follows. Indirect manufacturing Engineering support Electricity Setup costs Nonmanufacturing Customer service Costs Driver $ 53,600 Engineering modifications 53,600 Machine hours 160,800 Batches 110,500 Number of customers

Answer 1

1	Electricity expenses
	Total		$53,600
	Product A	0.4 MH/Unit
	Total unit of A	16000
	MH of product A	16000*.4	6400
	Product B		1.2MH/Unit
	Total unit of B	3600
	MH of product B	3600*1.2	4320
	Total Machine Hr		10720
	Electricity expnses/mh	$5
2	Electricity Expenses for Product A
		6400MH*$5/Mh	$32,000
3	Overhead cost per unit A
		(7504+32000+57428)/16000
		6.05825
4	Overhead cost per unit B
		(46096+4320*5+103370)/3600
		47.51833
5	Direct Labour Per Units
		Cost	$23/DLH
	A Product	23*.5	11.5
	Product B	23*1.5	34.5
6	No. of unit produce per customer
	A	16000unit/700customer
	B	3600 unit/600 customer
7	better method
	Departmental overhead rate method Plantwide overhead rate method Activity-based costing method

You did correct calculation of the direct labout per unit.

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