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
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Question
Subject :- Accounting
Transcribed Image Text: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
![Required information
Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3]
[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:
Rims
Posts
Direct Labor-
Bours 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
Estimated
Overhead Cost
$ 26,400
$ 163,680
$500,000
Estimated Activity
Rims
70
4,000
12,500
Posts
430
0
70,400
Total
500
4,000
82,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b6ce77-7d1f-42c7-90fc-6e082dc1db1b%2Fdff507d9-07e2-400c-a635-7b092475cf54%2Fkn07rrr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3]
[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:
Rims
Posts
Direct Labor-
Bours 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
Estimated
Overhead Cost
$ 26,400
$ 163,680
$500,000
Estimated Activity
Rims
70
4,000
12,500
Posts
430
0
70,400
Total
500
4,000
82,900
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