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He Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 per unit, using
He Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 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: Design Engineering Hours) Machining Machine Hours) Inspection (Batches) Usage by Cost Product a $ 190,000 108 $1,800,000 2,160 $ 160,000 42 Usage by Products 142 2,840 38 Atlanta manufactures 12,500 units of Product A and 10,200 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. Rate for Machining per hour c. Calculate the activity rate for inspection 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 por unit 9. 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 por 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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