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TB Problem 4 - 1 2 1 ( Algo ) Walnut Systems produces two products... Walnut Systems produces two products, Product A , which sells
TB Problem Algo Walnut Systems produces two products...
Walnut 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:
tableActivity Pool DriverCost of Pool,Usage by Product AUsage by Product BDesign Engineering Hours$Machining Machine HoursInspection Batches
Walnut 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 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
Note: Round your answer to decimal places.
g Determine the manufacturing cost per unit for Product B
Note: Round your answer to decimal places.
h Determine the gross profit per unit for Product
Note: Round your intermediate calculation to decimal places. Round your answer to decimal places.
i Determine the gross profit per unit for Product B
tablea Rate for Design,,per hourb Rate for Machining,,per hourc Rate for Inspection,,per hourd Indirect Costs,,e Indirect Costs,,f Manufacturing Cost,,per unitg Manufacturing Cost,,per unith Gross Profit,,per uniti Gross Profit,,per unit
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