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: Direct Labor- Hours per unit 0.30 0.50 Rims Posts 26,000 units 70,000 units Additional information about the company follows: a. Rims require $15 in direct materials per unit, and Posts require $11. 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: Annual Production Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours. Estimated Overhead Cost $32,900 $ 114,800 $ 1,404,000 Estimated Activity. Rims 60 4,000 7,800 Posts 140 0 35,000 Total 200 4,000 42,800 Exercise 4-8 (Algo) Part 2 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.)
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: Direct Labor- Hours per unit 0.30 0.50 Rims Posts 26,000 units 70,000 units Additional information about the company follows: a. Rims require $15 in direct materials per unit, and Posts require $11. 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: Annual Production Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours. Estimated Overhead Cost $32,900 $ 114,800 $ 1,404,000 Estimated Activity. Rims 60 4,000 7,800 Posts 140 0 35,000 Total 200 4,000 42,800 Exercise 4-8 (Algo) Part 2 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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![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-
Hours per unit
0.30
0.50
Additional information about the company follows:
a. Rims require $15 in direct materials per unit, and Posts require $11.
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
Annual
Production
26,000 units
70,000 units
Exercise 4-8 (Algo) Part 2
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 32,900
$ 114,800
$ 1,404,000
Estimated Activity.
Rims
60
4,000
7,800
Posts
140
0
35,000
Total
200
4,000
42,800
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F757a45c4-64e0-4c09-a3b7-73df959e2245%2F2fa3108e-ee1d-4576-9bc7-985ba4d9452a%2Fm1q8a3k_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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-
Hours per unit
0.30
0.50
Additional information about the company follows:
a. Rims require $15 in direct materials per unit, and Posts require $11.
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
Annual
Production
26,000 units
70,000 units
Exercise 4-8 (Algo) Part 2
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 32,900
$ 114,800
$ 1,404,000
Estimated Activity.
Rims
60
4,000
7,800
Posts
140
0
35,000
Total
200
4,000
42,800
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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