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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 0.40 0.60 Rims Posts Annual Production 26,000 units 88,000 units Additional information about the company follows: a. Rims require $20 in direkt materials per unit, and Posts require $18. b. The direct labor wage rate is $18 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: Estimated Activity Activity Cost Pool Machine setups Special processing Activity Measure Number of setups Machine-hours Estimated Overhead Cost $ 28, 160 $164,560 Rims 110 2,000 Posts 90 0 Total 200 2,000 Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 28,160 $ 164,560 $ 780,000 Rims 110 2,000 4,000 Posts 90 0 48,000 Total 200 2,000 52,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH 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 product cost of Posts
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