Required Information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [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 26,000 units 84,000 units 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: Direct Labor- Hours per unit 0.60 0.60 Activity Cost Pool Machine setups Special processing General factory Exercise 4-8 (Algo) Part 1 Activity Cost Pool Annual Production Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 per setup per MH per DLH Estimated Activity Rims 80 3,000 15,600 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Posts 320 50,400 Total 400 3,000 66,000

Required Information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [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 26,000 units 84,000 units 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: Direct Labor- Hours per unit 0.60 0.60 Activity Cost Pool Machine setups Special processing General factory Exercise 4-8 (Algo) Part 1 Activity Cost Pool Annual Production Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 per setup per MH per DLH Estimated Activity Rims 80 3,000 15,600 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Posts 320 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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! Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 787,500 551,250 236,250 111,250 Mementos $ 787,500 78,750 708,750 583,750 $ 125,000 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Sales 28,000 $ 0 $ 0…
Using ABC, the total manufacturing costs for product Regular is:
Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company expects sales of each product to increase to 67,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 863,900 Carvings $ 863,900 604,730 259, 170 116,170 86,390 777,510 634,510 $ 143,000 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units 67,000…
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1. Using ABC, the total manufacturing costs for product Regular is:
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