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Required information Skip to question [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data

Required information

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[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 Annual Production
Rims 0.80 29,000 units
Posts 0.80 73,000 units

Additional information about the company follows:

  1. Rims require $20 in direct materials per unit, and Posts require $18.
  2. The direct labor wage rate is $16 per hour.
  3. Rims are more complex to manufacture than Posts and they require special equipment.
  4. The ABC system has the following activity cost pools:

Activity Cost Pool Activity Measure Estimated Activity
Estimated Overhead Cost Rims Posts Total
Machine setups Number of setups $ 34,310 100 100 200
Special processing Machine-hours $ 113,150 1,000 0 1,000
General factory Direct labor-hours $ 1,218,000 23,200 58,400 81,600

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