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Direct Labor-Hours per unit Annual Production Rims 0.30 28,000 units Posts 0.60 76,000 units Rims require $17 in direct materials per unit, and Posts require
| Direct Labor-Hours per unit | Annual Production | |
| Rims | 0.30 | 28,000 units |
| Posts | 0.60 | 76,000 units |
- Rims require $17 in direct materials per unit, and Posts require $15.
- The direct labor wage rate is $15 per hour.
- Rims are more complex to manufacture than Posts and they require special equipment.
- The ABC system has the following activity cost pools:
| Estimated Activity | ||||||
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Rims | Posts | Total | |
| Machine setups | Number of setups | $ | 30,400 | 120 | 280 | 400 |
| Special processing | Machine-hours | $ | 145,160 | 2,000 | 0 | 2,000 |
| General factory | Direct labor-hours | $ | 728,000 | 9,000 | 47,000 | 56,000 |
unit product cost of rims ?
unit product cost of posts ?
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Good Better Best A Guidebook For Performance Auditing
Authors: Gary Blackmer
1st Edition
131265869X, 978-1312658691
