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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 0.80 0.40 Annual Production
High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow Direct Labour- Hours per Unit 0.80 0.40 Annual Production 32,000 units 140,000 units Rims Posts Additional information about the company follows: a. Rims require $18 in direct materials per unit, and posts require $11. b. The direct labour wage rate is $19 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 Ch Required: 1. Compute the activity rate for each activity cost pool. $ Activity Cost Pool Machine setups Special processings General factory Activity Rate 118 per setup 43 per MH 24 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 Activity Activity Measure Number of setups Machine-hours Direct labour-hours Activity Cost Pool Machine setups Special processing General factory Estimated Overhead Cost $35,400 $275,200 $1,958,400 Posts 140 Rims 160 6,400 25,600 Total 300 6,400 81,600 56,000 Required
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