Chapter 4 Homework Saved Help Save & Exit Submit Check my work Part 1 of 2 Required information Exercise 4-8 Computing ABC Product Costs (L04-2, LO4-3) 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: points Skipped Direct Labor-Hours per unit 0.60 0.60 Annual Production 26,000 units 84,000 units Rims Posts eBook Additional information about the company follows: References a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $20 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 $ 39,480 $ 146,160 $1,092,000 Rims 80 3,000 5,000 Posts Total 320400 3,000 73,000 78,000 Exercise 4-8 Part 1 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 DLH Chapter 4 Homework Saved Help Save & Exit Submit Check my work Part 2 of 2 Required Information Exercise 4-8 Computing ABC Product Costs [LO4-2, LO4-3) 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: points Skipped Direct Labor-Hours per unit 0.60 0.60 Annual Production 26,000 units 84,000 units Rims Posts eBook Additional information about the company follows: References a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $20 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 Rims Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 39,480 $ 146,160 $1,092,000 Posts 320 0 73,000 Total 400 3 ,000 78,000 3,000 5,000 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.) Unit product cost of Rims Unit product cost of Posts
