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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: Rims Posts Direct Labor- Hours per unit 0.30 0.20 Annual Production 29,000 units 86,000 units Additional information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. 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: Fetim Are

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: Rims Posts Direct Labor- Hours per unit 0.30 0.20 Annual Production 29,000 units 86,000 units Additional information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. 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: Fetim Are

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 per unit 0.30 0.20 Annual Production Rims Posts 29,000 units 86,000 units Additional information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. 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: Estimated Artision
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 0.30 0.20 Annual Production Rims Posts 29,000 units 86,000 units Additional information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. 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: Estimated Artision
a. Rims require $18 in direct materials per unit, and Posts require $14. 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 Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 42,140 $ 131,580 $ 1,479,000 Estimated Activity Rims 100 2,000 8,700 Posts 100 0 17,200 Total 200 2,000 25,900 Check my we 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.)
Transcribed Image Text:a. Rims require $18 in direct materials per unit, and Posts require $14. 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 Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 42,140 $ 131,580 $ 1,479,000 Estimated Activity Rims 100 2,000 8,700 Posts 100 0 17,200 Total 200 2,000 25,900 Check my we 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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