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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Detiremine the Activity rate for: Machine setups, special processing
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Detiremine the Activity rate for:
Machine setups, special processing and general factory.
And the unit product cost 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: Part 1 of 2 Direct Labor-Houre per unit 0.50 0.90 Annual 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: Eatimated Activit Estinated Overhead Cost Activity Cost Pool Machine setups Special procesaing General factory Activity Neasure Number of setups Machinc-hours Rins Posta 430 26,400 s 163,680 Direct 1abor-hours 500,000 70 4,000 3,000 500 4,000 50,000 47,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pool Machine setups Special processing General factory per setup per MH per DLH
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