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please explain all the calculations High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow Direct Labour Hours per
please explain all the calculations
High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow Direct Labour Hours per Annual Unit Production Rims 0.70 31,000 units Posts 0.35 135,000 units Additional information about the company follows: a Rims require $17 in direct materials per unit, and posts require $10. b. The direct labour 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 Activity Total Estimated Overhead Cost $34,510 $272,800 $1,585,850 Activity Heasure Number of setups Machine-hours Direct labour hours Posts 135 e Activity Cost Pool Machine setups Special processing General factory 155 6,200 21,700 6,20 $0.95 Required 1. Compute the activity rate for each activity cost pool Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labour-hours Estimated Overhead Cost $34,510 $272,800 $1,585,850 Rims 155 6,200 21,700 Posts 135 e 47,250 Total 290 6,200 68,950 Required: 1. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH 2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour (Round you intermediate calculations and final answers to 2 decimal places.) Rims Posts Unit cost Step by Step Solution
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