Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Annual Production Rims Posts Direct Labor- Hours per unit 0.60 0.60 Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. 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: Activity Cost Pool Machine setups Special processing General factory 26,000 units 84,000 units Activity Cost Pool achine setups Decial processing eneral factory Activity Measure Number of setups Machine-hours Direct labor-hours > Answer is not complete. Activity Rate Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 per setup per MH $ 14.00 per DLH Estimated Activity Rims quired: Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 80 3,000 15,600 Posts 320 0 50,400 Total 400 3,000 66,000

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Annual Production Rims Posts Direct Labor- Hours per unit 0.60 0.60 Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. 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: Activity Cost Pool Machine setups Special processing General factory 26,000 units 84,000 units Activity Cost Pool achine setups Decial processing eneral factory Activity Measure Number of setups Machine-hours Direct labor-hours > Answer is not complete. Activity Rate Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 per setup per MH $ 14.00 per DLH Estimated Activity Rims quired: Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 80 3,000 15,600 Posts 320 0 50,400 Total 400 3,000 66,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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