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A company produces two products, Product A, which sells for $2,400 per unit, and Product B, which sells for $4,800 per unit, using three
A company produces two products, Product A, which sells for $2,400 per unit, and Product B, which sells for $4,800 per unit, using three different activities: Design, which uses engineering hours as the cost driver, Machining, which uses machine hours as the cost driver, and Inspection, which uses the number of batches as the cost driver. The cost of each activity and usage of the cost drivers are as follows: Activity Pool (Driver) Design (engineering hours) Machining (machine hours) Inspection (Batches) Usage by Cost of Pool $ 1,500,000 5,000,000 300,000 Product A 470 2,560 48 Usage by Product B 530 5,440 72 The company manufactures 12,500 units of Product A and 8,750 units of Product B per month. Each unit of Product A uses $360 of direct materials and $340 of direct labor, while each unit of Product B uses $820 of direct materials and $420 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. b. Calculate the Machining activity proportions for Products A and B. c. Calculate the Inspection activity proportions for Products A and B. d. Determine the indirect costs assigned to Product A. e. Determine the indirect costs assigned to Product B. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate the Design activity proportions for Products A and B. Product A Product B Design Activity Proportions % $6 Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Proportions 96 Calculate the Machining activity proportions for Products A and B. Product A Machining Activity Product B % < Prev 23 of 44 Next > Mc Graw H d. Determine the indirect costs assigned to Product A e. Determine the indirect costs assigned to Product B. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate the Inspection activity proportions for Products A and B. Inspection Activity Product A Product B Proportions 96 96 Required 8 Required D> Prev 33 of 44 Nex Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Determine the indirect costs assigned to Product B. Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount. Indirect Costs
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