Walnut Systemsproduces two different products, Product A, which sells for $135per unit, and Product B, which sells for $192 per unit, using threedifferent activities: Design, which uses Engineering Hours as anactivity driver; Machining, which uses machine hours as an activitydriver; and Inspection, which uses number of batches as an activitydriver. The cost of each activity and usage of the activity driversare as follows:
| Cost | Usage by Product A | Usage by Product B |
| Design(Engineering Hours) | $ | 157,724 | | 218 | | | 306 | |
| Machining(Machine Hours) | $ | 546,840 | | 1,150 | | | 3,190 | |
| Inspection(Batches) | $ | 26,400 | | 41 | | | 19 | |
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Walnut manufactures 10,500 units of Product A and 6,900 units ofProduct B per month. Each unit of Product A uses $45 of directmaterials and $17 of direct labor, while each unit of Product Buses $70 of direct materials and $31 of direct labor.
Required:
a.Calculate the activity rate for design.
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. (Round your answer to 2 decimalplaces.)
h. Determine the gross profit per unit for ProductA. (Round your intermediate calculation to 2 decimalplaces. Round your answer to 2 decimal places.)
i. Determine the gross profit per unit for ProductB. (Round your intermediate calculation to 2 decimalplaces. Round your answer to 2 decimal places.)
