Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 perunit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hoursas an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of theactivity drivers are as follows:Usage byProduct AUsage byProduct BCostDesign (Engineering Hours)Machining (Machine Hours)Inspection (Batches)$ 190,000$1,800,000$1081422,1602,840160,00042388Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of directmaterials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor. d. Determine the indirect costs assigned to Product A.Indirect Costse. Determine the indirect costs assigned to Product B.Indirect Costsf. Determine the manufacturing cost per unit for Product A. (Round your answer to the nearest whole dollars.)Manufacturing Costper unit

The indirect costs include the factory overhead costs incurred into the production process. The…

Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 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 Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 160,000 108 142 2,840 2,160 42 38 Atlanta manufactures 12,500 units of Product A and 10,200 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 diroct Iahor

Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 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 Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 160,000 108 142 2,840 2,160 42 38 Atlanta manufactures 12,500 units of Product A and 10,200 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 diroct Iahor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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