[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 0.40 0.70 Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 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 18,000 units 77,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 30,030 $ 147,840 $ 576,000 Estimated Activity Rims 120 2,000 7,200 Posts 80 0 53,900 Total 200 2,000 61,100 Exercise 4-8 (Algo) Part 2 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Rou your final answers to 2 decimal places.)
[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 0.40 0.70 Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 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 18,000 units 77,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 30,030 $ 147,840 $ 576,000 Estimated Activity Rims 120 2,000 7,200 Posts 80 0 53,900 Total 200 2,000 61,100 Exercise 4-8 (Algo) Part 2 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Rou your final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[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
0.40
0.70
Activity Cost Pool
Machine setups
Special processing
General factory
Annual
Production
Additional information about the company follows:
a. Rims require $14 in direct materials per unit, and Posts require $11.
b. The direct labor wage rate is $15 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:
Unit product cost of Rims
Unit product cost of Posts
18,000 units
77,000 units
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 30,030
$147,840
$ 576,000
Estimated Activity
Rims
120
2,000
7,200
Posts
80
0
53,900
Total
200
2,000
61,100
Exercise 4-8 (Algo) Part 2
2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Rou
your final answers to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea1990d7-1173-466f-bfae-f9503d27ed5b%2Fba7c9235-d4d3-4b71-99fd-b524e977c39e%2F0qtb4og_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
0.40
0.70
Activity Cost Pool
Machine setups
Special processing
General factory
Annual
Production
Additional information about the company follows:
a. Rims require $14 in direct materials per unit, and Posts require $11.
b. The direct labor wage rate is $15 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:
Unit product cost of Rims
Unit product cost of Posts
18,000 units
77,000 units
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Estimated
Overhead Cost
$ 30,030
$147,840
$ 576,000
Estimated Activity
Rims
120
2,000
7,200
Posts
80
0
53,900
Total
200
2,000
61,100
Exercise 4-8 (Algo) Part 2
2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Rou
your final answers to 2 decimal places.)
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