Walnut Systems produces two products, Product A, which sells for $290 per unit, and Product B, which sells for $350 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) Design (engineering hours) Machining (machine hours) Inspection (batches) Usage by Cost of Pool $ 150,000 500,000 30,000 Product A 370 1,680 Usage by Product B 130 2,320 30 30 Walnut manufactures 10,000 units of Product A and 6,880 units of Product B per month. Each unit of Product A uses $16 of direct materials and $54 of direct labor, while each unit of Product B uses $92 of direct materials and $52 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. b. Calculate the Machining activity proportions for Products A and B. c. Calculate the Inspection activity proportions for Products A and B.

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TB Problem 4-124 (Algo) Walnut Systems produces two...
Walnut Systems produces two products, Product A, which sells for $290 per unit, and Product B, which sells for $350 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)
Design (engineering hours)
Machining (machine hours)
Inspection (batches)
Usage by
Cost of Pool
$ 150,000
500,000
30,000
Product A
370
Usage by
Product B
130
1,680
30
2,320
30
Walnut manufactures 10,000 units of Product A and 6,880 units of Product B per month. Each unit of Product A uses $16 of direct
materials and $54 of direct labor, while each unit of Product B uses $92 of direct materials and $52 of direct labor.
Required:
a. Calculate the Design activity proportions for Products A and B.
b. Calculate the Machining activity proportions for Products A and B.
c. Calculate the Inspection activity proportions for Products A and B.
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.
g. Determine the manufacturing cost per unit for Product B.
h. Determine the gross profit per unit for Product A.
i. Determine the gross profit per unit for Product B
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C Required D Required E Required F Required G Required H
Required I
Determine the gross profit per unit for Product B.
Gross Profit
per unit
<Required H
Required S
Transcribed Image Text:TB Problem 4-124 (Algo) Walnut Systems produces two... Walnut Systems produces two products, Product A, which sells for $290 per unit, and Product B, which sells for $350 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) Design (engineering hours) Machining (machine hours) Inspection (batches) Usage by Cost of Pool $ 150,000 500,000 30,000 Product A 370 Usage by Product B 130 1,680 30 2,320 30 Walnut manufactures 10,000 units of Product A and 6,880 units of Product B per month. Each unit of Product A uses $16 of direct materials and $54 of direct labor, while each unit of Product B uses $92 of direct materials and $52 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. b. Calculate the Machining activity proportions for Products A and B. c. Calculate the Inspection activity proportions for Products A and B. 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. g. Determine the manufacturing cost per unit for Product B. h. Determine the gross profit per unit for Product A. i. Determine the gross profit per unit for Product B Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Required H Required I Determine the gross profit per unit for Product B. Gross Profit per unit <Required H Required S
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