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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
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: Rims Posts Direct Labor- Hours per unit 0.50 0.60 Annual Production 18,000 units 77,000 units Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $8. 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 Coat Rins $ 34,650 $124,740 $648,000 120 2,000 9,000 Posts 80 0 Total 200 2,000 46,200 55,200 Exercise 4-8 (Algo) Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate 1 Machine setups Special processing General factory per setup per MH per DLH
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