Calculate the machining activity proportions for products

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Reference no: EM131256219

Atlanta Systems produces two different products, Product A, which sells for $253 per unit, and Product B, which sells for $413 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: Cost Usage by Product A Usage by Product B Design (Engineering Hours) $ 148,000 100 150 Machining (Machine Hours) $ 820,000 1,435 2,665 Inspection (Batches) $ 78,000 54 26 Atlanta manufactures 9,500 units of Product A and 7,900 units of Product B per month. Each unit of Product A uses $95 of direct materials and $40 of direct labor, while each unit of Product B uses $131 of direct materials and $73 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.

Reference no: EM131256219

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