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A company produces two products, Product A, which sells for $1,200 per unit, and Product B, which sells for $2,400 per unit, using three different

A company produces two products, Product A, which sells for $1,200 per unit, and Product B, which sells for $2,400 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:

image text in transcribed

The company manufactures 12,500 units of Product A and 8,500 units of Product B per month. Each unit of Product A uses $480 of direct materials and $220 of direct labor, while each unit of Product B uses $760 of direct materials and $360 of direct labor.

Required:

  1. Calculate the Design activity proportions for Products A and B.
  2. Calculate the Machining activity proportions for Products A and B.
  3. Calculate the Inspection activity proportions for Products A and B.
  4. Determine the indirect costs assigned to Product A.
  5. Determine the indirect costs assigned to Product B.
image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed \begin{tabular}{lrrr} Activity Pool (Driver) & Usage by & \multicolumn{2}{c}{ Usage by } \\ \hline Design (engineering hours) & Cost of Pool & Product A & Product B \\ Machining (machine hours) & $1,500,000 & 410 & 590 \\ Inspection (Batches) & 5,000,000 & 2,080 & 5,920 \\ 300,000 & 84 & 36 \end{tabular} Complete this question by entering your answers in the tabs below. Calculate the Design activity proportions for Products A and B. Complete this question by entering your answers in the tabs below. Calculate the Machining activity proportions for Products A and B. Complete this question by entering your answers in the tabs below. Calculate the Inspection activity proportions for Products A and B. Complete this question by entering your answers in the tabs below. Determine the indirect costs assigned to Product A. Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount. Complete this question by entering your answers in the tabs below. Determine the indirect costs assigned to Product B. Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount

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