Atlanta Systems produces two different products, Product A, which sells for $350 per unit, and Product...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Atlanta Systems produces two different products, Product A, which sells for $350 per unit, and Product B, which sells for $600 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) Required: a. Calculate the activity rate for design. Rate for Design Cost $ 170,000 $1,400,000 $ 120,000 Atlanta manufactures 12,500 units of Product A and 9,200 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 B uses $140 of direct materials and $75 of direct labor. Rate for Machining b. Calculate the activity rate for machining. per hour Rate for Inspection per hour c. Calculate the activity rate for inspection. Usage by Product A 104 2,080 46 per batch Usage by Product B 146 2,920 34 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 per unit g. 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 per unit i. 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 Atlanta Systems produces two different products, Product A, which sells for $350 per unit, and Product B, which sells for $600 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) Required: a. Calculate the activity rate for design. Rate for Design Cost $ 170,000 $1,400,000 $ 120,000 Atlanta manufactures 12,500 units of Product A and 9,200 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 B uses $140 of direct materials and $75 of direct labor. Rate for Machining b. Calculate the activity rate for machining. per hour Rate for Inspection per hour c. Calculate the activity rate for inspection. Usage by Product A 104 2,080 46 per batch Usage by Product B 146 2,920 34 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 per unit g. 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 per unit i. 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
Expert Answer:
Answer rating: 100% (QA)
Total Engineering Hours are 250 104 146 Total Machine Hours are 5000 2080 2920 Total Number of Batch... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...
-
=) An alternating emf of peak-to-peak value of 40 V is applied across the series combination of an inductor of inductance 100 mH, capacitor of capacitance 1 F and resistance 10052. Determine maximum...
-
Sketch the variation of the velocity and thermal boundary layer thicknesses with distance from the leading edge of a flat plate for the laminar flow of air, water engine oil and mercury. For each...
-
The long-term debt documentation (indexed K-1) was prepared by client personnel and audited by AA, an audit assistant, during the calendar year 2004 audit of American Widgets, Inc., a continuing...
-
Following is a sample of five matched pairs. Let 1 and 2 represent the population means and let d = 1 2. A test will be made of the hypotheses H0: d = 0 versus H1: d > 0. a. Compute the differences....
-
You are considering three stocks with the following expected dividend yields and capital gains: a) What is the expected return on each stock? b) How may transactions costs and capital gains taxes...
-
On January 1, 2023, Liu Corporation paid $255,016 to acquire bonds of Singh Investment Corp with a par value of $253,000. The annual contract rate on the bonds is 7.5% and interest is paid...
-
Keenan is purchasing a new boat that sells for $56,214, including taxes and fees. He receives $17,000 as a trade-in on his old boat and uses the money as a down payment. Keenan finances the balance...
-
A company has experienced negative publicity associated with users giving out their credentials accidentally or sharing intellectual secrets that were not property defined. The company recently...
-
briefly explain two of the other 5 reasons our text identifies as a reason to study human relations ?
-
Leadership practices for human capital management, including ethical and legal responsibilities, and describe how these practices might apply to the HRM effectiveness improvement plan
-
in regards to disney world why should an organization be concerned about labor relations? Contrast the style of labor unions in the U.S. to that found in another country? Also, briefly discuss ways...
-
In what ways doyousee adult learningprinciplesandemotional literacy enacted inyourown learning experiences (consider both formal and informal experiences and settings)?
-
Suppose the recruitment director of AMCE Inc. who has a professional HR designation, was given box seats to a major sporting event by a potential hire. What has the recruitment director potentially...
-
delection/max extraction in max heap to write the pseudo code for a function that extracts the element with maximum value from a max heap, removes that element from the array, restores the array to a...
-
Suppose that you are part of a virtual team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit...
-
From a traditional point of view, what are the two primary purposes of responsibility reports?
-
Enumerate the requirements of a good information system.
-
Employees of Rockingham Enterprises work in groups of five, plus a group leader. Standard production for a group is 400 units for a 40-hour week. The workers are paid $6 an hour until production...
-
Consider the purchases function of a manufacturing company. To overcome a downward profitability trend, management recently instituted a "just-in-time" system of acquiring raw materials for its...
-
Explain how creating a process map and internal threat analysis helps in determining the extent to which substantive testing is to be performed on the accounts associated with the supply chain and...
-
The following are routine procedures for the audit of the purchases process. For each procedure, (1) state whether it is a test of controls or a substantive test of transactions or balances, (2)...
Study smarter with the SolutionInn App