Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow. Direct Labor-Hours Annual per unit 0.30 Production Rims 27,000 units 75,000 units Posts 0.50 Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 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 Overhead Activity Cost Pool Machine setups Rims Activity Measure Number of setups Cost Posts Total $30,000 $ 121,500 $ 756,000 100 50 150 Special processing General factory 6,000 9,000 Machine-hours 6,000 54,000 Direct labor-hours 45,000 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.) Unit product cost of Rims Unit product cost of Posts

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow. Direct Labor-Hours Annual per unit 0.30 Production Rims 27,000 units 75,000 units Posts 0.50 Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 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 Overhead Activity Cost Pool Machine setups Rims Activity Measure Number of setups Cost Posts Total $30,000 $ 121,500 $ 756,000 100 50 150 Special processing General factory 6,000 9,000 Machine-hours 6,000 54,000 Direct labor-hours 45,000 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.) Unit product cost of Rims Unit product cost of Posts

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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