Required Information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts 26,000 units 84,000 units Additional Information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. 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: Direct Labor- Hours per unit 0.60 0.60 Activity Cost Pool Machine setups Special processing General factory Exercise 4-8 (Algo) Part 1 Activity Cost Pool Annual Production Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 per setup per MH per DLH Estimated Activity Rims 80 3,000 15,600 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Posts 320 50,400 Total 400 3,000 66,000

Required Information Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts 26,000 units 84,000 units Additional Information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. 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: Direct Labor- Hours per unit 0.60 0.60 Activity Cost Pool Machine setups Special processing General factory Exercise 4-8 (Algo) Part 1 Activity Cost Pool Annual Production Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 39,480 $ 146,160 $ 1,092,000 per setup per MH per DLH Estimated Activity Rims 80 3,000 15,600 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Posts 320 50,400 Total 400 3,000 66,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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