Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct
Labor Hours Annual
per unit Production
| Rims | 0.50 | 27,000 | units |
| Posts | 0.10 | 53,000 | units |
Additional information about the company follows:
a. Rims require $24 in direct materials per unit, and Posts require $16.
b. The direct labor wage rate is $11 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 | ||||
| Activity Cost Pool (and activity measure) | Overhead Cost | Rims | Posts | Total | |
| Machine setups (number of setups) | $ | 15,525 | 75 | 60 | 135 |
| Special processing (machine hours) | $ | 72,000 | 3,600 | 0 | 3,600 |
| General factory (direct labor hours) | $ | 206,800 | 13,500 | 5,300 | 18,800 |
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 setup
General factory ?per setup
rev: 02 15 2011
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 $