Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two produ Rims Posts Direct Labor- Hours per unit 0.70 0.60 Annual Production 20,000 units 84,000 units Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $15 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 Rims $ 28,560 $ 159,600 80 6,000 Posts 130 0 Total 210 6,000 Direct labor-hours $ 680,000 14,000 50,400 64,400 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Roun ur final answers to 2 decimal places.) nit product cost of Rims Init product cost of Posts

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two produ Rims Posts Direct Labor- Hours per unit 0.70 0.60 Annual Production 20,000 units 84,000 units Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $15 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 Rims $ 28,560 $ 159,600 80 6,000 Posts 130 0 Total 210 6,000 Direct labor-hours $ 680,000 14,000 50,400 64,400 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Roun ur final answers to 2 decimal places.) nit product cost of Rims Init 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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