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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 | 0.60 | 21,000 | units |
| Posts | 0.20 | 50,000 | units |
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| Additional information about the company follows: |
| a. | Rims require $27 in direct materials per unit, and Posts require $19. |
| b. | The direct labor wage rate is $18 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 (and activity measure) | Overhead Cost | Rims | Posts | Total | |
| Machine setups (number of setups) | $ | 34,020 | 135 | 108 | 243 |
| Special processing (machine hours) | $ | 216,000 | 4,800 | 0 | 4,800 |
| General factory (direct labor hours) | $ | 452,000 | 12,600 | 10,000 | 22,600 |
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| Required: | |
| 1. | Compute the activity rate for each activity cost pool. (Omit the “$” sign in your response.) |
| Activity Cost Pool | Activity Rate | |
| Machine setups | $ | per setup |
| Special processing | $ | per MH |
| General factory | $ | per DLH |
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| 2. |
Determine the unit cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the “$” sign in your response.) |
| Rims | Posts | |
| Direct materials | $ | $ |
| Direct labor | ||
| Overhead | ||
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| Unit cost | $ | $ |
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I got the first part of the question but i cant figure out how to figure out the unit costs