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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 0.70 0.70 Rims Posts Annual Production 22,000 units 79,000 units Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $19 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 Rims Overhead Activity Cost Pool Activity Measure Cost 27,650 Machine setups Number of setups $ 119,290 Special processing Machine-hours $ Posts 120 Total 200 80 1,000 0 1,000 Estimated Activity Estimated Overhead Rims Total Activity Cost Pool Activity Measure Cost Machine setups Number of setups $ 27,650 Special processing Machine-hours $ 119,290 Posts 120 80 200 1,000 0 1,000 General factory Direct labor-hours $616,000 8,000 36,000 44,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.) Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH
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