Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
4-3
! 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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS