Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.40 26,000

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:

Direct Labor-Hours per unit Annual Production Rims 0.40 26,000 units Posts 0.60 88,000 units

Additional information about the company follows: Rims require $20 in direct materials per unit, and Posts require $18. The direct labor wage rate is $18 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:

Activity Cost Pool Activity Measure Estimated Activity Estimated Overhead Cost Rims Posts Total Machine setups Number of setups $ 28,160 110 90 200 Special processing Machine-hours $ 164,560 2,000 0 2,000 General factory Direct labor-hours $ 780,000 10,400 52,800 63,200 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.)

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

Step: 3

blur-text-image

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

Cost Accounting For Managerial Planning Decision Making And Control

Authors: Andrew Schiff, Hsihui Chang, Woody M Liao, James L Boockholdt

5th Edition

0759340412, 978-0759340411

More Books

Students also viewed these Accounting questions