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? ! Ch 3 Questions 2-3 (of 6) [The following information applies to the questions displayed below Performance Products Corporation makes two products, titanium Rims
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Ch 3 Questions 2-3 (of 6) [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 Annual Production Rims Posts 0.40 0.70 18,000 units 77,000 units Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $11. 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 Estimated Overhead CostRims s 30,030 s 1478402.000 $576.000 7000 120 80 Number of setups Machine-hours 200 2.000 36,000 Special processing Direct labor-hours Step by Step Solution
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