Question
Atlanta Systems produces two different products, Product A, which sells for $265 per unit, and Product B, which sells for $418 per unit, using three
Atlanta Systems produces two different products, Product A, which sells for $265 per unit, and Product B, which sells for $418 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:
Cost | Usage by Product A | Usage by Product B | ||||||
Design (Engineering Hours) | $ | 138,000 | 125 | 125 | ||||
Machining (Machine Hours) | $ | 990,000 | 2,596 | 3,304 | ||||
Inspection (Batches) | $ | 78,000 | 52 | 28 | ||||
Atlanta manufactures 9,400 units of Product A and 8,000 units of Product B per month. Each unit of Product A uses $91 of direct materials and $36 of direct labor, while each unit of Product B uses $138 of direct materials and $72 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. (Round your final answers to 2 decimal places.) d. Determine the indirect costs assigned to Product A. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) e. Determine the indirect costs assigned to Product B. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) f. Determine the manufacturing cost per unit for Product A. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) g. Determine the manufacturing cost per unit for Product B. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) h. Determine the gross profit per unit for Product A. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) i. Determine the gross profit per unit for Product B. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Atlanta Systems produces two different products, Product A, which sells for $265 per unit, and Product B, which sells for S418 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, whch uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Cost $138,000 Design (Engineering Hours Machining (Machine Hours) Inspection(Batches) 125 5990,000 2,596 52 125 3,304 S 78,000 28 Atlanta manufactures 9,400 units of Product A and 8,000 units of Product B per month, Each unit of Product A uses $91 of direct materials and $36 of direct labor, while each unit of Product B uses $138 of direct materials and $72 of direct labor Callae the npection actviy papotions for Podcts and & Raund your inal answers to 2 decinal places d Determre the nrect costs assgned to Product A (Do not round intermedite calculations Round your final answer to the nearest dollar amount. g. Determine the marufacturing cost per unit for Product B Do not round intermediate calculations, Round your final answer to the nearest dollar amount h. Determine the gross prost per unilt for Product A. (Do not round intermed ate ealculations Round your final answer to tha nearest dollar amoune e. Determine the indirect costs assigned to Product B.(Do not round Intermediate calculations.Round your final answer to the nearest dolar amount. Cetermine the gross pofper unit for Produet 8.(0o not round intermediate colcuistions Round your final answer to the nearest dollar amount.) Determine the manufacturing cost per unit for Product A. [Do not round intermediate calculations, Round your final answer to the nearest dollar amount)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started