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Atlanta Systems produces two products, Product A , which sells for $ 6 5 0 per unit, and Product B , which sells for $
Atlanta Systems produces two products, Product A which sells for $ per unit, and Product B which sells for $ per unit, using three 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 Cost of Pool Usage by Product A Usage by Product B
Design engineering hours $
Machining machine hours
Inspection batches
Atlanta manufactures units of Product A and units of Product B per month. Each unit of Product A uses $ of direct materials and $ of direct labor, while each unit of Product B uses $ of direct materials and $ of direct labor.
Required:
A Calculate the activity rate for design.
B Calculate the activity rate for machining.
C Calculate the activity rate for inspection.
D Determine the indirect costs assigned to Product A
E Determine the indirect costs assigned to Product B
F Determine the manufacturing cost per unit for Product A
Note: Round your answer to the nearest whole dollars.
GDetermine the manufacturing cost per unit for Product B
Note: Round your answer to the nearest whole dollars.
HDetermine the gross profit per unit for Product A
Note: Round your intermediate calculations and final answer to the nearest whole dollars.
I. Determine the gross profit per unit for Product B
Note: Round your intermediate calculations and final answer to the nearest whole dollars.
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