# 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 (@ \$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:
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

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