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Walnut Systems produces two different products, Product A, which sells for $190 per unit, and Product B, which sells for $250 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: Design (Engineering hours) Machining (Machine Hours) Inspection (Batches) Cost $150,000 $500,000 $ 30,000 Usage by Product 270 1,280 24 Usage by Product B 230 2,720 36 Walnut manufactures 10,000 units of Product A and 8,540 units of Product B per month. Each unit of Product A uses $36 of direct materials and $34 of direct labor, while each unit of Product B uses $82 of direct materials and $42 of direct labor. Required: a. Calculate the Design activity proportions for Products A and B. Design Activity Proportions Product A Product B % b. Calculate the Machining activity proportions for Products A and B. Machining Activity Proportions Product A Product B %
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