Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow. Direct Labor-Hours Annual per unit 0.30 Production Rims 27,000 units 75,000 units Posts 0.50 Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 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 Estimated Overhead Activity Cost Pool Machine setups Rims Activity Measure Number of setups Cost Posts Total $30,000 $ 121,500 $ 756,000 100 50 150 Special processing General factory 6,000 9,000 Machine-hours 6,000 54,000 Direct labor-hours 45,000 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
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow. Direct Labor-Hours Annual per unit 0.30 Production Rims 27,000 units 75,000 units Posts 0.50 Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 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 Estimated Overhead Activity Cost Pool Machine setups Rims Activity Measure Number of setups Cost Posts Total $30,000 $ 121,500 $ 756,000 100 50 150 Special processing General factory 6,000 9,000 Machine-hours 6,000 54,000 Direct labor-hours 45,000 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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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
Annual
per unit
Production
Rims
0.30
27,000 units
75,000 units
Posts
0.50
Additional information about the company follows:
a. Rims require $12 in direct materials per unit, and Posts require $10.
b. The direct labor wage rate is $20 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
Estimated
Overhead
Activity Cost Pool
Machine setups
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Cost
Rims
Posts
Total
$ 30,000
$ 121,500
$ 756,000
100
50
150
Special processing
General factory
6,000
6,000
9,000
45,000
54,000
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2F30aa5ac9-385d-483c-bda5-05b525da1908%2Fl2gwctf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
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
Annual
per unit
Production
Rims
0.30
27,000 units
75,000 units
Posts
0.50
Additional information about the company follows:
a. Rims require $12 in direct materials per unit, and Posts require $10.
b. The direct labor wage rate is $20 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
Estimated
Overhead
Activity Cost Pool
Machine setups
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Cost
Rims
Posts
Total
$ 30,000
$ 121,500
$ 756,000
100
50
150
Special processing
General factory
6,000
6,000
9,000
45,000
54,000
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
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