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TB Problem 4 - 1 2 4 ( Algo ) Walnut Systems produces two... Walnut Systems produces two products, Product A , which sells for

TB Problem 4-124(Algo) Walnut Systems produces two...
Walnut Systems produces two products, Product A, which sells for $290 per unit, and Product B, which sells for $350 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:
\table[[Activity Pool (Driver),Cost of Pool,\table[[Usage by],[Product A]],\table[[Usage by],[Product B]]],[Design (engineering hours),$150,000,370,130],[Machining (machine hours),500,000,1,680,2,320],[Inspection (batches),30,000,30,30]]
Walnut manufactures 10,000 units of Product A and 6,880 units of Product B per month. Each unit of Product A uses $16 of direct materials and $54 of direct labor, while each unit of Product B uses $92 of direct materials and $52 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.
Gross Profit
per unit
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