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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 Rims Posts 0.40
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow Direct Labor- Hours per unit Rims Posts 0.40 0.70 Annual Production 18,000 units 77,000 units Additional information about the company follows. a. Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 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 Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Activity Estimated Overhead Cost $ 30,030 Rims 120 Posts 80 Total 200 $ 147,840 2,000 0 2,000 $ 576,000 7,200 53,900 61,100 Exercise 4-8 (Algo) Part 2 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Rou your final answers to 2 decimal places.) Unit product cost of Rims Unit product cost of Posts
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