Fremont Systems produces two different products, Product A,which sells for $1,000 per unit, and Product B, which sells for$2,000 per unit, using three different activities: Design, whichuses Engineering Hours as an activity driver; Machining, which usesmachine hours as an activity driver; and Inspection, which usesnumber of batches as an activity driver. The cost of each activityand usage of the activity drivers are asfollows:   

	Cost		Usage by Product A			Usage by Product B
Design (Engineering Hours)	$	1,500,000		400			600
Machining (Machine Hours)	$	5,000,000		2,000			6,000
Inspection (Batches)	$	300,000		90			30

Fremont manufactures 10,000 units of Product A and 7,500 units ofProduct B per month. Each unit of Product A uses $500 of directmaterials and $200 of direct labor, while each unit of Product Buses $750 of direct materials and $350 of directlabor.  

Required:

a. Calculate the activity rate fordesign.



b. Calculate the activity rate formachining.



c. Calculate the activity rate forinspection.



d. Determine the indirect costs assigned toproduct A.

    

e. Determine the indirect costs assigned toproduct B.   



f. Determine the manufacturing cost per unit forproduct A. (Round your answer to 2 decimalplaces.)



g. Determine the manufacturing cost per unit forproduct B.

     

h. Determine the gross profit per unit forproduct A. (Round your intermediate calculation to 2decimal places. Round your answer to 2 decimalplaces.)



i. Determine the gross profit per unit for productB.