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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 18,000
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 | 18,000 units |
Posts | 0.80 | 76,000 units |
Additional information about the company follows:
- Rims require $10 in direct materials per unit, and Posts require $7.
- The direct labor wage rate is $17 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 | $ 25,080 | 80 | 220 | 300 |
Special processing | Machine-hours | $ 122,360 | 2,000 | 0 | 2,000 |
General factory | Direct labor-hours | $ 702,000 | 7,200 | 60,800 | 68,000 |
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.)
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