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This is a 2 part question. ! Required information [The following information applies to the questions displayed below. Performance Products Corporation makes two products, titanium
This is a 2 part 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 products follow: Direct Labor-Hours per unit 0.60 0.50 Annual Production 19,000 units 78,000 units Rims Posts Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $17 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 General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 27,300 $ 144,300 $570,000 Rims 110 3,000 5,000 Posts 190 0 52,000 Total 300 3,000 57,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLHStep by Step Solution
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