Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:...
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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 Posts 0.80 29,000 units 0.80 73,000 units Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $16 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: Activity Cost Pool Machine setups Special processing General factory Estimated Activity Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims Posts Total $ 34,310 100 100 200 $ 113,150 1,000 0 1,000 Direct labor-hours $ 1,218,000 23,200 58,400 81,600 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Annual Production Rims Posts 0.80 29,000 units 0.80 73,000 units Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $16 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: Activity Cost Pool Machine setups Special processing General factory Estimated Activity Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims Posts Total $ 34,310 100 100 200 $ 113,150 1,000 0 1,000 Direct labor-hours $ 1,218,000 23,200 58,400 81,600 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH
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To compute the activity rate for each activity cost pool we divide the total overhea... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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