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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)

 

  Product A Product B

Number of units produced 11,500 units 1,800 units

Direct labor cost (@ $30 per DLH) 0.16 DLH per unit 0.25 DLH per unit

Direct materials cost $ 1.50 per unit $ 3.10 per unit   

Activity Overhead costs

Machine setup   $ 92,500  

Materials handling     52,000  

Quality control inspections     79,920      

$ 224,420  




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