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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 0.30 0.50 Rims Posts Annual Production 27,000 units 75,000 units Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 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 Estimated Overhead Activity Cost Pool Activity Measure Cost Rims Posts Total --L------- AI ---L--E. + 30,000 Estimated Overhead Posts Rims 100 Total 150 50 Activity Cost Pool Activity Measure Cost Machine setups Number of setups $ 30,000 Special processing Machine-hours $ 121,500 General factory Direct labor-hours $ 756,000 6,000 6,000 9,000 45,000 54,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.) Activity Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH
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