Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Walnut Systems produces two different products, Product A, which sells for $120 per unit, and Product B, which sells for $180 per unit, using three

image text in transcribed
image text in transcribed
image text in transcribed
Walnut Systems produces two different products, Product A, which sells for $120 per unit, and Product B, which sells for $180 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: Usage by Cost Product A Usage by Product B Design (Engineering Hours) $ 150,000 200 300 Machining (Machine Hours) $ 500,000 1,000 3,000 Inspection (Batches) $ 30,000 45 15 Walnut manufactures 10,000 units of Product A and 7,500 units of Product B per month. Each unit of Product A uses $50 of direct materials and $20 of direct labor, while each unit of Product Buses $75 of direct materials and $35 of direct labor. Required: Calculate the activity rate for Design Refer to Question 33 (Walnut Systems). Determine the indirect costs assigned to Product A. QUESTION 37 Refer to Question 33 (Walnut Systems). Determine the indirect costs assigned to Product B. QUESTION 38 Refer to Question 33 (Walnut Systems). Determine the manufacturing cost per unit for Product A. Refer to Question 33 (Walnut Systems). Determine the manufacturing cost per unit for Product B. QUESTION 40 Refer to Question 33 (Walnut Systems), Determine the gross profit per unit for Product A. QUESTION 41 Refer to Question 33 (Walnut Systems). Determine the gross profit per unit for Product B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions