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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 0.70 20,000
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-Hours per unit | Annual Production | |
Rims | 0.70 | 20,000 units |
Posts | 0.60 | 84,000 units |
Additional information about the company follows:
- Rims require $16 in direct materials per unit, and Posts require $12.
- The direct labor wage rate is $15 per hour.
- Rims are more complex to manufacture than Posts and they require special equipment.
- The ABC system has the following activity cost pools:
Estimated Activity | ||||||
Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Rims | Posts | Total | |
Machine setups | Number of setups | $ | 28,560 | 80 | 130 | 210 |
Special processing | Machine-hours | $ | 159,600 | 6,000 | 0 | 6,000 |
General factory | Direct labor-hours | $ | 680,000 | 10,000 | 30,000 | 40,000 |
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 Posts
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