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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 0.30 0.15 Annual Production
High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow: Direct Labour- Hours per Unit 0.30 0.15 Annual Production 26,000 units 110,000 units Rims Posts Additional information about the company follows: a. Rims require $16 in direct materials per unit, and posts require $9. b. The direct labour wage rate is $14 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 $30, 240 $265,200 $437, 400 Rims 130 5,200 7,800 Posts 110 0 16,500 Total 240 5, 200 24,300 Required: 1. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH 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 Posts Unit cost
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