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Atlanta Systems produces two different products Product A, which sells for $800 per unit, and Product B, which sells for $1.500 per unit, using three
Atlanta Systems produces two different products Product A, which sells for $800 per unit, and Product B, which sells for $1.500 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: Usage by Usage by Cost Product Product B Design (Engineering Hours) $ 260,000 122 128 Machining Machine Hours) $3,200,000 2,440 2,560 Inspection (Batches) $ 300,000 52 28 Atlanta manufactures 12,500 units of Product A and 10,422 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 $75 of direct labor. Required: a. Calculate the activity rate for design. Rate for Design per hour b. Calculate the activity rate for machining, per hour Rate for Machining c. Calculate the activity rate for inspection Rate for inspection per batch d. Determine the indirect costs assigned to Product A. Indirect Costs e. Determine the indirect costs assigned to Product B. Indirect Costs f. Determine the manufacturing cost per unit for Product A. (Round your answer to the nearest whole dollars.) Manufacturing Cost per unit g. Determine the manufacturing cost per unit for Product B. (Round your answer to the nearest whole dollars.) Manufacturing Cost per unit h. Determine the gross profit per unit for Product A. (Round your intermediate calculations and final answer to the nearest whole dollars.) Gross Profit per unit Manufacturing Cost Help (per unit h. Determine the gross profit per unit for Product A. (Round your intermediate calculations and final answer to the nearest whole dollars.) Gross Profit per unit 1. Determine the gross profit per unit for Product B. (Round your intermediate calculations and final answer to the nearest whole dollars.) Gross Profit per unit
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