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Can someone please show step by step what I am doing wrong? Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the
Can someone please show step by step what I am doing wrong?
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Annual Production per unit 0.70 Rims 20,000 units 84,000 units Posts 0.60 Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12 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 Estimated Overhead Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Rims Cost Posts Total 28,560 159,600 680,000 80 130 210 Machine-hours 6,000 6,000 40,000 0 Direct labor-hours 30,000 10,000 Exercise 4-8 Part 2 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Answer is complete but not entirely correct. Unit product cost of Rims 17.02 Unit product cost of Posts 6.28 $Step by Step Solution
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