1) Hours of direct labor for product A = 16,000 units×0.5 DLH/unit = 8,000 hrs

Product B: Direct Labor Hours = 3,600 Units×1.5 DLH/unit = 5,400 hrs

Overhead costs = Engineering support+Electricity+Setup costs

= $53,600+$43,880+$171,520= $268,000

Calculation of manufacturing cost per unit using the plantwide overhead rate based on direct labor hours.

1.2)

2.1)

Calculation of gross profits generated by each customer for Product A and ProductB using the plantwide overhead rates

2.2)

Calculation of the cost to provide customer service to each client

Is Product A and B producing a sufficient gross profit for each customer?

3.1)

Calculation of the manufacturing cost per unit for each product line using ABC

3.2)