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pt1 pt2 Exercise 4-0 (Aigo) Compuung ADC Product Costs LLU4-2, LU4-3) [The following information applies to the questions displayed below.] Performance Products Corporation makes two
pt1
Exercise 4-0 (Aigo) Compuung ADC Product Costs LLU4-2, LU4-3) [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rins Posts Direct Labor- Hours per unit 0.70 0.80 Activity Cost Pool Machine setups Special processing General factory Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 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: Exercise 4-8 (Algo) Part 1 Activity Cost Pool Annual Production Machine setups Special processing General factory 26,000 units 90,000 units. Activity Measure Number of setups Machine-hours Direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate Estimated Overhead Cost $33,300 $ 172,800 $ 858,000 per setup per MH per DLH Estimated Activity Rims 70 3,000 18,200 Posts 230 0 72,000 Total 300 3,000 90,200 Required information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow. Direct Labor- Hours per unit 0.70 0.80 Annual Production 26,000 units 90,000 units. Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 per hour. d. c. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Rims Posts Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 33,300 $ 172,800 $ 858,000 Estimated Activity Rins 70 3,000 18,200 Posts 230 (53 0 72,000 Total 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. Round your final answers to 2 decimal places.). 300 3,000 90,200 pt2
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