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Could you please help me with question 2, the answers to question 1 are correct. High-Calibre Products Corporation makes two products: titanium rims and posts.
Could you please help me with question 2, the answers to question 1 are correct.
High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow: Direct Labour- Hours per Unit 0.80 Rims Posts Annual Production 24,000 units 100,000 units 0.40 Additional information about the company follows: a. Rims require $21 in direct materials per unit, and posts require $14. b. The direct labour 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: Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labour-hours Estimated Overhead Cost $27,280 $ 235, 200 $947,200 Rims 120 4,800 19, 200 Posts 100 0 40,000 Total 220 4,800 59,200 Required: 1. Compute the activity rate for each activity cost pool. $ Activity Cost Pool Machine setups Special processing General factory Activity Rate 124 per setup 49 per MH 16 per DLH $ $ 2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour. (Round your intermediate calculations and final answers to 2 decimal places.) Rims 23.22 $ Posts 6.52 Unit cost $Step by Step Solution
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