Question
Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two
Required information [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 | 0.30 | 21,000 Units |
Post | 0.50 | 74,000 Units |
Additional information about the company follows: Rims require $15 in direct materials per unit, and Posts require $12. 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 overhead cost | Rims | Posts | Totals |
Machine Setups | Number of Setups | $ 37,000 | 120 | 280 | 400 |
Special Processing | Machine-hours | $ 146,520 | 4,000 | 0 | 4,000 |
General Factory | Direct-Labor-Hours | $ 672,000 | 10,000 | 32,000 | 42,000 |
Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Activity Cost Pool | Activity Rate | |
Machine Setups | ? | Per Setup |
Special Processing | ? | Per MH |
General Factory | ? | Per DHL |
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.)
Unit Product Cost of Rims | ????? |
Unit Cost of Post | ????? |
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