Consider the following data for two products of vigano

Question

Consider the following data for two products of Vigano Manufacturing.

Required: 

1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. 

2. If the market price for Product A is $ 20 and the market price for Product B is $ 60, determine the profit or loss per unit for each product. Comment on the results. 

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?

4. Determine the profit or loss per unit for each product. Should this information influence company strategy?Explain.