Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Rims Posts per unit 0.40 0.80 Annual Production 18,000 units 76,000 units Additional information about the company follows: a. Rims require $10 in direct materials per unit, and Posts require $7. b. The direct labor wage rate is $17 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 Mach ine setups Special process ing General factory Activity Measure Number of setups Mach ine-hours Direct labor-hours Estimated Overhead Cost $ 25,080 $ 122,360 $ 702,000 Rims 80 2,000 7,200 Posts Total 300 2,000 68,000 220 60,800 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round ir final answers to 2 decimal places.) it product cost of Rims it product cost of Posts

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Rims Posts per unit 0.40 0.80 Annual Production 18,000 units 76,000 units Additional information about the company follows: a. Rims require $10 in direct materials per unit, and Posts require $7. b. The direct labor wage rate is $17 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 Mach ine setups Special process ing General factory Activity Measure Number of setups Mach ine-hours Direct labor-hours Estimated Overhead Cost $ 25,080 $ 122,360 $ 702,000 Rims 80 2,000 7,200 Posts Total 300 2,000 68,000 220 60,800 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round ir final answers to 2 decimal places.) it product cost of Rims it product cost of Posts

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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[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 0.60 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. Activity Cost Pool Machine setups Special processing General factory 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 26,000 units 84,000 units $ 14.00 Activity Measure Number of setups Machine-hours Direct labor-hours X Answer is not complete. Activity Rate Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Estimated Overhead Cost $ 39,480 $…
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[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: DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2…
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