Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fremont Systems produces two products, Product A, which sells for $3,400 per unit, and Product B, which sells for $6,800 per unit, using three
Fremont Systems produces two products, Product A, which sells for $3,400 per unit, and Product B, which sells for $6,800 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: Activity Pool (Driver) Design (engineering hours) Machining (machine hours) Inspection (Batches) Cost of Pool $ 1,500,000 5,000,000 300,000 Usage by Product A Usage by Product B 520 2,960 480 5,040 30 90 Fremont manufactures 10,820 units of Product A and 10,500 units of Product B per month. Each unit of Product A uses $260 of direct materials and $440 of direct labor, while each unit of Product B uses $870 of direct materials and $470 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. 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. g. Determine the manufacturing cost per unit for Product B. h. Determine the gross profit per unit for Product A. i. Determine the gross profit per unit for Product B. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Required H Req Calculate the Design activity proportions for Products A and B.
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