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Rims Posts Direct Labor- Hours per unit 0.50 0.80 Annual Production. 25,000 units 88,000 units Additional information about the company follows: a. Rims require
Rims Posts Direct Labor- Hours per unit 0.50 0.80 Annual Production. 25,000 units 88,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $17. b. The direct labor wage rate is $15 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: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Exercise 4-8 (Algo) Part 1 Required: Estimated Activity Estimated Overhead Cost $ 26,400 $ 163,680 Rims Posts Total 70 430 500 4,000 0 4,000 $ 500,000 12,500 70,400 82,900 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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