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High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow: Direct Labour- Hours per Unit 0.70 0.35 Rims Posts
High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow: Direct Labour- Hours per Unit 0.70 0.35 Rims Posts Annual Production 31,000 units 135,000 units Additional information about the company follows: a. Rims require $17 in direct materials per unit, and posts require $10. b. The direct labour wage rate is $18 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 $34,510 $272,800 $1,585,850 Rims 155 6,200 21,700 Posts 135 0 47,250 Total 290 6,200 68.950 Required: 1. Compute the activity rate for each activity cost pool. Answer is complete but not entirely correct. Activity Cost Pool Activity Rate Machine setups $ 117 X per setup Special $ 44 per MH processing General factory $ 23 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.) Answer is complete but not entirely correct. Rims 52.09 Posts 24.47 Unit cost $ $
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