Allerite Systems produces two different products, Product A, which sells for $650 per unit, and Product...
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Allerite Systems produces two different products, Product A, which sells for $650 per unit, and Product D, which sells for $1,200 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usign (Engineering Hours) Machining (Machine Hours) Inspection (Batches) Cost $250,000 $2,600,000 $ 240,000 Usage by Product A 116 2,320 34 Usage by Product 154 2,688 48 Atlanta manufactures 12,500 units of Product A and 10172 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product Buses $140 of direct materials and S/5 of direct labor Required: a. Calculate the activity rate for design. Kate for Design per hour b. Calculate the activity rate for machining. Rate for Machining par hour c. Calculate the activity rate for inspection Rate for Inspection per banch d. Determine the indirect costs assigned to Product A. Indirect Costs e. Determine the Indirect costs assigned to Product B Indirect Cust Allerite Systems produces two different products, Product A, which sells for $650 per unit, and Product D, which sells for $1,200 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usign (Engineering Hours) Machining (Machine Hours) Inspection (Batches) Cost $250,000 $2,600,000 $ 240,000 Usage by Product A 116 2,320 34 Usage by Product 154 2,688 48 Atlanta manufactures 12,500 units of Product A and 10172 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product Buses $140 of direct materials and S/5 of direct labor Required: a. Calculate the activity rate for design. Kate for Design per hour b. Calculate the activity rate for machining. Rate for Machining par hour c. Calculate the activity rate for inspection Rate for Inspection per banch d. Determine the indirect costs assigned to Product A. Indirect Costs e. Determine the Indirect costs assigned to Product B Indirect Cust
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