Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.48 8.20 20,000 units 80,000 units Additional Information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $16 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 Annual Production Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups. Machine-hours Direct labor-hours Estimated Overhead Cost $ 21,600 $ 180,000 $ 288,000 Estimated Activity Rims 100 4,000 8,000 Posts 80 0 16,000 Total 180 4,000 24,000 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.)
Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.48 8.20 20,000 units 80,000 units Additional Information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $16 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 Annual Production Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups. Machine-hours Direct labor-hours Estimated Overhead Cost $ 21,600 $ 180,000 $ 288,000 Estimated Activity Rims 100 4,000 8,000 Posts 80 0 16,000 Total 180 4,000 24,000 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.)
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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![Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow:
Rims
Posts
Direct Labor-
Hours per unit
0.48
8.20
20,000 units
80,000 units
Additional Information about the company follows:
a. Rims require $17 in direct materials per unit, and Posts require $10.
b. The direct labor wage rate is $16 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
Annual
Production
Unit product cost of Rims
Unit product cost of Posts
Activity Measure
Number of setups.
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 21,600
$ 180,000
$ 288,000
Estimated Activity
Rims
100
4,000
8,000
Posts
80
0
16,000
Total
180
4,000
24,000
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fafc9af5d-13d5-4a21-b936-a9fd4e463914%2F4f789c2b-e675-4b7c-84f8-97623953c769%2F3rsapaj_processed.png&w=3840&q=75)
Transcribed Image Text:Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow:
Rims
Posts
Direct Labor-
Hours per unit
0.48
8.20
20,000 units
80,000 units
Additional Information about the company follows:
a. Rims require $17 in direct materials per unit, and Posts require $10.
b. The direct labor wage rate is $16 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
Annual
Production
Unit product cost of Rims
Unit product cost of Posts
Activity Measure
Number of setups.
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 21,600
$ 180,000
$ 288,000
Estimated Activity
Rims
100
4,000
8,000
Posts
80
0
16,000
Total
180
4,000
24,000
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.)
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