Fremont Systems Produces Two Different Products,Product A,which Sells for $1,000

question 11

Essay

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

Understand the importance of authenticity and intent in endorsing negotiable instruments.

Identify factors that affect a party's liability on a negotiable instrument.

Comprehend the requirements and effects of specific conditions or characteristics on the negotiability of instruments.

Understand the concept of limited attention and its implications on information processing.

---

Definitions:

Technological Developments

Progress or advancements in technology and its applications affecting various aspects of life.

Normative History-Graded

Influences that are experienced by a specific culture or generation, affecting individuals in a similar manner across that group.

Normative Age-Graded

Pertains to the typical or expected life events that occur at certain ages, shaped by cultural, social, and biological factors.

Normative Age-Graded

Influences or events that are typical for individuals of a specific age in a given culture, contributing to the similarities in development and aging processes.