Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Labour- Hours per Unit 0.2e 0.18 Rims Posts Annual Production 27,000 units 115,eee units Additional information about the company follows: a. Rims require $15 in

image text in transcribed
image text in transcribed
Labour- Hours per Unit 0.2e 0.18 Rims Posts Annual Production 27,000 units 115,eee units Additional information about the company follows: a. Rims require $15 in direct materials per unit, and posts require $8. b. The direct labour wage rate is $13 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 $31,750 $280,800 $321, 100 Posts Rims 135 5,400 5,400 115 Total 250 5,400 16,900 11,500 Requirect 1. Compute the activity rate for each activity cost pool 2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labow (Round your Intermediate calculations and final answers to 2 decimal places.) Rims Posts 3 45.775 23:31 UCOS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Pension Scheme Accounting

Authors: Shona Harvie, Joanne Scriven, Phil Spary

2nd Edition

1526508974, 9781526508973

More Books

Students also viewed these Accounting questions