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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Determine the unit product cost of each product according
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Determine the unit product cost of each product according to the ABC system of Rims and Posts
Required information The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow Direct Labor-Hours per unit 0.50 0.80 Annua1 Production 25,000 units 88,000 units Rims Posts Additional information about the company follows a. Rims require $19 in direct materials per unit, and Posts require $17 b. The direct labor wage rate is $15 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 Estimated Activit Estimated Overhead Cost Activity Cost Pool Machine setupe Special processing General factory Activity Measure Number of setups Machine-hours Rims Total Posts 430 S 26,400 163,680 Direct labor-hours 500,000 70 4,000 3,000 500 4,000 50,000 47,000 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Unit product cost of Rims Unit product cost of PostsStep by Step Solution
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