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1a. Find machine setups per setup 1b. Find special processing per MH 1c. Find general factory activity rate per DLH 2a. Find Unit product cost
1a. Find machine setups per setup
1b. Find special processing per MH
1c. Find general factory activity rate per DLH
2a. Find Unit product cost of Rims
2b. Find Unit product cost of Posts
Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.60 0.20 Annual Production 22,000 units 80,000 units Rims Posts Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 27,200 $ 130,400 $1,656,000 Rims 120 5,000 5,000 Posts 280 @ 61,000 Total 400 5,000 66,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLHStep by Step Solution
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