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Please answer #2. Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.40 0.60
Please answer #2.
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.40 0.60 Annual Production 26,000 units 88,000 units Rims Posts 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 $18 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 Estimated Overhead Total 200 2,000 52,000 Activity Cost Pool Machine setups Activity Measure Cost Rims Posts 90 $ 28,160 164,560 Direct labor-hours 780,000 Number of setups Machine-hours 110 2,000 4,000 Special processing General factory 48,000 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 3.00Step by Step Solution
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