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Direct Labor-Hours per unit 0.30 0.50 Annual Production 27,000 units 75,000 units Rims Posts Additional information about the company follows: a. Rims require $12 in
Direct Labor-Hours per unit 0.30 0.50 Annual Production 27,000 units 75,000 units Rims Posts Additional information about the company follows: a. Rims require $12 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: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Posts 50 Estimated Overhead Cost $ 30,000 $ 121,500 $ 756,000 Activity Measure Number of setups Machine-hours Direct labor-hours Rims 100 6,000 9,000 Total 150 6,000 54,000 45,000 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
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