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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.40
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.40 Annual Production 20,000 units 0.20 80,000 units Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. 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: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost $ 21,600 $ 180,000 Rims Posts Total 100 80 180 4,000 0 4,000 Direct labor-hours $ 288,000 8,000 16,000 24,000 2. Determine the unit product cost of each product according to the ABC system. (Do not round ntermediate calculations. Round your final answers to 2 decimal places.)
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