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 per unit 0.60 0.60 Annual Production 26,000 units 84,000 units Rims Posts 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: Estimated Activity Estimated Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 Rims 80 Posts Total 320 400 3,000 15,600 3,000 66,000 50,400

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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nout 3
P 1,092,000
13,000
50,400
66,000
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Activity Cost Pool
Activity Rate
Machine setups
per setup
Special processing
per MH
General factory
per DLH
Transcribed Image Text:nout 3 P 1,092,000 13,000 50,400 66,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Machine setups 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 per unit
0.60
0.60
Annual
Production
26,000 units
84,000 units
Rims
Posts
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:
Estimated Activity
Activity Cost Pool
Machine setups
Special processing
General factory
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 39,480
$ 146,160
$ 1,092,000
Rims
Posts
Total
400
3,000
66,000
80
320
3,000
15,600
50,400
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 per unit 0.60 0.60 Annual Production 26,000 units 84,000 units Rims Posts 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: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 Rims Posts Total 400 3,000 66,000 80 320 3,000 15,600 50,400
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