Reference no: EM13586802

The following data are for the two products produced by Tadros Company. Product A Product B Direct materials $ 14 per unit $ 27 per unit Direct labor hours 0.3 DLH per unit 1.5 DLH per unit Machine hours 0.2 MH per unit 1.1 MH per unit Batches 115 batches 230 batches Volume 10,000 units 2,000 units Engineering modifications 11 modifications 55 modifications Number of customers 500 customers 400 customers Market price $ 35 per unit $ 95 per unit The company's direct labor rate is $10 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing Engineering support $ 24,000 Engineering modifications Electricity 21,000 Machine hours Setup costs 43,000 Batches Nonmanufacturing Customer service 74,000 Number of customers Required: (Round your per unit cost answers to 2 decimal places.)

Which method of product costing gives better information to managers of this company? Activity-based costing method Departmental overhead rate method Plantwide overhead rate method.