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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
hrd.3
Transcribed Image Text:Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-
Hours per unit
0.20
0.70
Rims
Posts
Additional information about the company follows:
a. Rims require $19 in direct materials per unit, and Posts require $15.
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
Exercise 4-8 (Algo) Part 2
Annual
Production
21,000 units
79,000 units
Unit product cost of Rims
Unit product cost of Posts
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 34,760
$ 136,670
$ 819,000
Estimated Activity
Rims
110
1,000
4,200
Posts
90
0
55,300
Total
200
1,000
59,500
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.)
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