| Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: |
| Direct Labor Hours per unit |
Annual Production |
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| Rims | 0.40 | 22,000 units |
| Posts | 0.20 | 85,000 units |
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| Additional information about the company follows: |
| a. Rims require $16 in direct materials per unit, and Posts require $9. |
| 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: |
| Estimated | Activity | |||||
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| Activity Cost Pool | Activity Measure | Estimated Overhead Cost |
Rims | Posts | Total | |
| Machine setups | Number of setups | $ | 22,000 | 89 | 75 | 164 |
| Special processing | Machine hours | $ | 150,000 | 4,100 | 0 | 4,100 |
| General factory | Direct labor hours | $ | 293,000 | 8,800 | 17,000 | 25,800 |
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rev: 02 15 2011, 02_09_2013_QC_26287
1. value:
4.00 points
| Required: |
| 1. |
Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.) |
| Activity Cost Pool | Activity Rate | |
| Machine setups | $ | per setup |
| Special processing | $ | per MH |
| General factory | $ | per DLH |
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rev: 02 15 2011 check my workreferencesebook & resources
2. value:
4.00 points
| 2. |
Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculation. Round your final answers to 2 decimal places.) |
| Unit product cost of Rims | $ |
| Unit product cost of Posts | $ |
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