Homework Help Question & Answers

Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with...

Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Ro1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for eachActivity Driver Activity Rate Total Overhead Cost per unit 5 units 175,000 parts 50 setups 817.85 0.23 per part 310.00 per se

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.) Number of units produced Direct labor cost (@ $31 per DLH) Direct materials cost Product A 12,500 units 0.13 DLH per unit $ 2.00 per unit Product B 1,100 units 0.22 DLH per unit $ 2.50 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 33,532 62,000 83,700 $ 179,232 Required:
1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead costs Direct labor hours Overhead Assigned Product A Product B $ 179,232 $ 96.00 per direct labor hour 1,867 Activity Plantwide OH Total Overhead Driver rate Cost 1,625 $ 96.00 $ 156,000 242 $ 96.00 $ 23,232 Units Produced 12,500 1,100 OH Cost per unit $ 12.48 21.12 $ Total manufacturing cost per unit: Direct material cost per unit Direct labor cost per unit Overhead cost per unit Total manufacturing cost Product A 2.00 4.03 12.48 18.51 Product B 2.50 6.82 21.12 30.44 $ 2. If the market price for Product A is $23.63 and the market price for Product B is $60, determine the profit or loss per unit for each product. Product A Product B Market price 23.63 60.00 Manufacturing cost per unit (18.51) (30.44) Profit(loss) per unit $ 5.12$ 29.56 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Product A Product B Number of setups required for production 5 setups 36 setups Number of parts required 14 part/unit part/unit Inspection hours required 50 hours 220 hours 5 33.532 817.85 per setup 41 Machine setup Overhead costs Number of setups Materials handling Overhead costs Number of parts Quality control Overhead costs Inspection hours $ 0.23 per part 62.000 265,000 310.00 per inspection hour 83.700 270
Activity Driver Activity Rate Total Overhead Cost per unit 5 units 175,000 parts 50 setups 817.85 0.23 per part 310.00 per setup 4,089 40,250 $ X 15,500 $ 59,839 12,500 4.78 $ Overhead Assigned Product A Machine setup Materials handling Quality control Total overhead costs assigned Total units produced Overhead cost per unit Product B Machine setup Materials handling Quality control Total overhead costs assigned Total units produced Overhead cost per unit Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit $ per unit $ 36 5,500 220 units parts setups $ $ 817.85 0.23 310.00 per part per setup 29,443 1,265 68,200 98,908 1,100 89.91 $ $ $ Product A 2.00 4.03 Product B 2.50 6.82 89.91 99.23 4.78 10.81 $ 4. Determine the profit or loss per unit for each product assuming ABC costing. Product A Market price $ 23.63 Manufacturing cost per unit (10.81) Profit(loss) per unit 12.82 $ Product B 60.00 (99.23) (39.23) ► $ 1.2 Based on your results in part 4, should the profit or loss per unit for each product influence company strategy? No Yes
0 0
Next > < Previous
Answer

This Homework Help Question: "Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with..." No answers yet.

Be the First!

Request Answer

Request answer!

We need 10 more requests to produce the answer to this homework help question. Share with your friends to get the answer faster!

0 /10 have requested the answer to this homework help question.

Request! (Login Required) Share with friends


Once 10 people have made a request, the answer to this question will be available in 1-2 days.
All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with...
Your Answer: Your Name: What's your source?
Similar Homework Help Questions
  • Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated with...

    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.) Sumber of units produced Direct bor boat (625 per DLR) Direct materials cast 11,500 units 0.11 U per unit 1.800 units 0.27 D per unit 6 2.30 unit 6 9.625 Activity Machine setup Materials handling Quality control inspections 14,010 6148,835 Required: Answer is complete but...

  • Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with...

    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 unlt" answers to 2 decimal places.) Product A Number of units produced 12,500 units Direct labor cost (@ $24 per DLH) 0.20 DLH per unit Direct materials cost $ 1.50 per unit Product B 1,400 units 0.23 DLH per unit $ 2.30 per unit Mat ne serctivit Machine setup Materials handling...

  • Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with...

    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) Number of units produced Direct labor cost (@ $24 per DLH) Direct materials cost Product A 11,500 units 0.20 DLH per unit $ 2.40 per unit Product B 1,500 units 0.27 DLH per unit $ 2.70 per unit Activity Machine setup Materials handling Quality control...

  • Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with...

    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.) Number of units produced Direct labor cost (@ $29 per DLH) Direct materials cost Product A 12,000 units 0.14 DLH per unit $ 1.80 per unit Product B 1,900 units 0.21 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality control...

  • Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with...

    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.) Number of units produced DIH) Direct labor cost (@ $31 per DLH) Direct materials cost Product A 13,500 units 0.14 DLH per unit $ 1.80 per unit Product B 1,300 units 0.28 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality...

  • Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated with...

    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.) Number of units produced Direct labor cost 825 per DLH) Direct materials CONE Product 11.500 units 0.11 DLH per unit $ 1.90 per unit Product B 1.800 units 0.27 DLH per unit $ 2.30 per unit Activity Machine setup Materials handling Quality control inspections Overhead...

  • Consider the following data for two products of Gitano Manufacturing (Loss amounts should be indicated w...

    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.) Number of units produced Direct labor cost (329 per DLH) Direct materials cost Product 11,000 units 0.12 DLH per unit $ 2.30 per unit Products 1.500 units 0.27 DH per unit $ 2.70 per unit Overhead costs Activity Machine setup Materials handling Quality control inspections...

  • Question 5 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be...

    Question 5 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.) Number of units produced Direct labor cost (@ $30 per DLH) Direct materials cost Product A 11,000 units 0.13 DLH per unit $ 2.50 per unit Product B 1,300 units 0.26 DLH per unit $ 2.70 per unit Activity Machine setup Materials handling...

  • HOW DO I CALCULATE? Consider the following data for two products of Gitano Manufacturing. (Loss amounts...

    HOW DO I CALCULATE? 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.) Number of units produced Direct labor cost (@ $28 per DLH) Direct materials cost Product A 11,000 units 0.12 DLH per unit $ 1.60 per unit Product B 1,100 units 0.28 DLH per unit $ 2.90 per unit Activity Machine setup...

  • Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus s...

    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 anewers to 2 decimal placa8) Product A Product B 12000 units 18 DLH per unit 3240 per unit 1,700 umits 24 DLH per unit 2.90 per unit Number of units produced Direct labor cost$30 per DLH Direct materials cost Activity Machine setup Material's handling Quality control inspections erhead costs -...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.