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Direct Labor- Hours per unit Rims Posts 0.70 0.80 Annual Production 26,000 units 90,000 units Additional information about the company follows: a. Rims require
Direct Labor- Hours per unit Rims Posts 0.70 0.80 Annual Production 26,000 units 90,000 units 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 $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 Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Activity Estimated Overhead Cost $ 33,300 $172,800 $ 858,000 Rins 70 3,000 Posts 230 0 Total 300 3,000 18,200 72,000 90,200 Exercise 4-8 (Algo) Part 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.)
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