Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Rims Posts per unit 0.40 0.80 Annual Production 18,000 units 76,000 units Additional information about the company follows: a. Rims require $10 in direct materials per unit, and Posts require $7. b. The direct labor wage rate is $17 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 Mach ine setups Special process ing General factory Activity Measure Number of setups Mach ine-hours Direct labor-hours Estimated Overhead Cost $ 25,080 $ 122,360 $ 702,000 Rims 80 2,000 7,200 Posts Total 300 2,000 68,000 220 60,800 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round ir final answers to 2 decimal places.) it product cost of Rims it product cost of Posts
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Rims Posts per unit 0.40 0.80 Annual Production 18,000 units 76,000 units Additional information about the company follows: a. Rims require $10 in direct materials per unit, and Posts require $7. b. The direct labor wage rate is $17 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 Mach ine setups Special process ing General factory Activity Measure Number of setups Mach ine-hours Direct labor-hours Estimated Overhead Cost $ 25,080 $ 122,360 $ 702,000 Rims 80 2,000 7,200 Posts Total 300 2,000 68,000 220 60,800 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round ir final answers to 2 decimal places.) it product cost of Rims it product cost of Posts
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 9PB: Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to...
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