Atlanta Systems produces two different products, Product A, which sells for $350 per unit, and Product...

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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

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