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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
Skip to question
[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:
- Rims require $20 in direct materials per unit, and Posts require $18.
- The direct labor wage rate is $16 per hour.
- Rims are more complex to manufacture than Posts and they require special equipment.
- 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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