Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Annual Production 21,000 units 74,000 units Rims Posts Direct Labor- Hours per unit 0.30 0.50 Additional information about the company follows: a. Rims require $15 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $16 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 Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 37,000 $ 146,520 $ 672,000 Estimated Activity Rims 120 4,000 6,300 Posts 280 0 37,000 Total 400 4,000 43,300 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.)

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Annual Production 21,000 units 74,000 units Rims Posts Direct Labor- Hours per unit 0.30 0.50 Additional information about the company follows: a. Rims require $15 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $16 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 Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 37,000 $ 146,520 $ 672,000 Estimated Activity Rims 120 4,000 6,300 Posts 280 0 37,000 Total 400 4,000 43,300 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.)

Name: Unit cost per rims? And Unit cost per posts? Performance Products Corp
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Description: Unit cost per rims? And Unit cost per posts? Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:AnnualProductionRimsPostsDirect Labor-Hours per unit0.300.50Additional information about

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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