Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | 0.40 | 18,000 units |
Posts | 0.80 | 76,000 units |
Additional information about the company follows:
- Rims require $10 in direct materials per unit, and Posts require $7.
- The direct labor wage rate is $17 per hour.
- Rims are more complex to manufacture than Posts and they require special equipment.
- The ABC system has the following activity cost pools:
Estimated Activity | ||||||
Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Rims | Posts | Total | |
Machine setups | Number of setups | $ | 25,080 | 80 | 220 | 300 |
Special processing | Machine-hours | $ | 122,360 | 2,000 | 0 | 2,000 |
General factory | Direct labor-hours | $ | 702,000 | 7,000 | 47,000 | 54,000 |
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started