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Required information [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: Direct Labor-Hours Annual per unit 0.30 Production Rims 27,000 units Posts 0.50 75,000 units Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. 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: Estimated Activity Estimated Overhead Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Cost Rims Posts Total $ 30,000 $ 121,500 $ 756,000 100 50 150 Machine-hours 6,000 6,000 54,000 Direct labor-hours 9,000 45,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Activity Rate per setup Special processing per MH General factory per DLH

Required information [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: Direct Labor-Hours Annual per unit 0.30 Production Rims 27,000 units Posts 0.50 75,000 units Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. 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: Estimated Activity Estimated Overhead Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Cost Rims Posts Total $ 30,000 $ 121,500 $ 756,000 100 50 150 Machine-hours 6,000 6,000 54,000 Direct labor-hours 9,000 45,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Activity Rate per setup Special processing per MH General factory per DLH

FINANCIAL ACCOUNTING
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.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Annual per unit 0.30 Production 27,000 units 75,000 units Rims Posts 0.50 Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. 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: Estimated Activity Estimated Overhead Activity Cost Pool Machine setups Activity Measure Number of setups Machine-hours Direct labor-hours Cost Rims Posts Total $ 30,000 $ 121,500 $ 756,000 100 50 150 Special processing General factory 6,000 9,000 6,000 54,000 45,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per setup Activity Cost Pool Machine setups Special processing per MH General factory per DLH
Transcribed Image Text:Required information [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: Direct Labor-Hours Annual per unit 0.30 Production 27,000 units 75,000 units Rims Posts 0.50 Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. 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: Estimated Activity Estimated Overhead Activity Cost Pool Machine setups Activity Measure Number of setups Machine-hours Direct labor-hours Cost Rims Posts Total $ 30,000 $ 121,500 $ 756,000 100 50 150 Special processing General factory 6,000 9,000 6,000 54,000 45,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per setup Activity Cost Pool Machine setups Special processing per MH General factory per DLH
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