Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Walnut Systems produces two products, Product A, which sells for $125 per unit, and Product B, which sells for $209 per unit, using three activities:

image text in transcribedimage text in transcribed

Walnut Systems produces two products, Product A, which sells for $125 per unit, and Product B, which sells for $209 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: Activity Pool (Driver) Cost of Pool Usage by Product A Usage by Product B Design (Engineering Hours) $ 157,472 210 308 Machining (Machine Hours) 590,400 1,040 3,060 Inspection (Batches) 30,000 40 20 Walnut manufactures 11,500 units of Product A and 7,600 units of Product B per month. Each unit of Product A uses $49 of direct materials and $11 of direct materials and $11 of direct labor, while each unit of Product B uses $71 of direct materials and $32 of direct labor.

I do not know if what I have filled in is correct or not so please help me correct those if they are wrong, and help me fill in the rest

Walnut Systems produces two products, Product A, which sells for $125 per unit, and Product B, which sells for $209 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 Walnut manufactures 11,500 units of Product A and 7,600 units of Product B per month. Each unit of Product A uses $49 of direct materials and $11 of direct labor, while each unit of Product B uses $71 of direct materials and $32 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 A. Note: Round your answer to 2 decimal places. g. Determine the manufacturing cost per unit for Product B. Note: Round your answer to 2 decimal places. h. Determine the gross profit per unit for Product A. Note: Round your intermediate calculation to 2 decimal places. Round your answer to 2 decimal places. i. Determine the gross profit per unit for Product B. 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 A. Note: Round your answer to 2 decimal places. g. Determine the manufacturing cost per unit for Product B. Note: Round your answer to 2 decimal places. h. Determine the gross profit per unit for Product A. Note: Round your intermediate calculation to 2 decimal places. Round your answer to 2 decimal places. i. 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