Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Rims Posts 0.40 0.60 Annual Production 26,000 units 88,000 units Chec Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 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. Estimated Overhead Cost $ 28,160 Rims 110 Posts 90 Total 200 $ 164,560 2,000 0 2,000 Direct labor-hours $ 780,000 10,400 52,800 63,200 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 I Init product cost of Docte
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Rims Posts 0.40 0.60 Annual Production 26,000 units 88,000 units Chec Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 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. Estimated Overhead Cost $ 28,160 Rims 110 Posts 90 Total 200 $ 164,560 2,000 0 2,000 Direct labor-hours $ 780,000 10,400 52,800 63,200 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 I Init product cost of Docte
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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![Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-
Hours per unit
Rims
Posts
0.40
0.60
Annual
Production
26,000 units
88,000 units
Chec
Additional information about the company follows:
a. Rims require $20 in direct materials per unit, and Posts require $18.
b. The direct labor wage rate is $18 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.
Estimated
Overhead Cost
$ 28,160
Rims
110
Posts
90
Total
200
$ 164,560
2,000
0
2,000
Direct labor-hours
$ 780,000
10,400
52,800
63,200
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
I Init product cost of Docte](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7a0fc77-5ffd-4ccc-ac16-1db2d233b019%2F2be3a370-6476-4340-aba5-592e727b7254%2Fzbpsl5a_processed.png&w=3840&q=75)
Transcribed Image Text:Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-
Hours per unit
Rims
Posts
0.40
0.60
Annual
Production
26,000 units
88,000 units
Chec
Additional information about the company follows:
a. Rims require $20 in direct materials per unit, and Posts require $18.
b. The direct labor wage rate is $18 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.
Estimated
Overhead Cost
$ 28,160
Rims
110
Posts
90
Total
200
$ 164,560
2,000
0
2,000
Direct labor-hours
$ 780,000
10,400
52,800
63,200
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
I Init product cost of Docte
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