Tried http://www.proofwiki.org/wiki/Quotient_Group_of_Direct_Products

Proof on p. 3 and 4 . For the case $n = 2$.
Define $h: A_1 \times A_2 \rightarrow \dfrac{A_{1}} {B_{1}} \times \dfrac {A_{2}} {B_{2}}$ as $h(a_1,a_2) = (a_1B_1, a_2B_2)$.
Apply Fundamental Homomorphism Theorem. The main result now follows by induction on n.
Fixed (1.) For Fundamental Homomorphism Theorem to operate, $\ker h := \{ \, (a_1,a_2) : h(a_1,a_2) = \color{brown}{id(\text{image of H})} \} $ needs to be $B_1 \times B_2$.
Let $id(A_n)$ = identity element of $A_n$ to reduce typing. I need to calculate $(a_1,a_2) \in \ker h$ $\iff h(a_1,a_2) = (a_1B_1, a_2B_2) \qquad = \color{brown}{( \, id(\frac{A_1}{B_1}), id(\frac{A_2}{B_2}) \,) = (idB_1, idB_2) = (B_1, B_2) }$.
$\implies a_1B_1 = B_1, a_2B_2 = B_2 \iff a_1 \in B_1, a_2 \in B_2 \iff (a_1,a_2) \in B_1 \times B_2.$
Hence $\ker h = B_1 \times B_2$.
(2.) How do you envisage and envision $h(a_1,a_2) = (a_1B_1, a_2B_2)$ as the homomorphism?
(3.) What's the intuition? Right now I only understand this as a bunch of algebra.
In general, if $N$ is a normal subgroup of the group $G$, then there is always a homomorphism from $G$ onto (it is surjective) $G/N$, namely $\pi: G \rightarrow G/N$, defined by $\pi(g)=gN$ (also written as $\bar g$). Here $G/N$ is the set of cosets of $N$ in $G$, and this set of cosets can be endowed with a natural group structure: $\bar g\cdot \bar h=\overline{g*h}$, where $*$ is the group multiplication in $G$. And guess what, this is all well-defined because $N$ is normal. There is no dependence on coset representatives. Moreover, $ker(\pi)=N$.
So what you are facing is just an extension of this principle to a direct product of groups $A_i$ with each a normal subgroup $B_i$. The direct product of these $B_i$s is again a normal subgroup and the $\pi$ is treated per coordinate, so to speak.
This part is not correct, you wrote: "Let $id(A_n)$ = identity element of $A_n$ to reduce typing. I need to calculate $\ker h \iff h(a_1,a_2) = (a_1B_1, a_2B_2) = ( id(A_1), id(A_2))$". No! You have to show that $h(a_1,a_2) = (a_1B_1, a_2B_2) = (\, id(A_1/B_1), id(A_2/B_2))$, so as cosets $a_1B_1=B_1$ and $a_2B_2=B_2$. This is equivalent to $a_1 \in B_1$ and $a_2 \in B_2$. And I am sure you can take it from here now.
Hope this helps.