Topic: Welcome to SummerACCT203 DL Syllabus SummChapter 4. Activity-Based CChapter 4: Homeworkb Introduction To ManagerialXhttps://newconnect.mheducation.com/flow/connect.htmlChapter 4: HomeworkiSavedHelpSave & ExitSubmitCheck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.Return to question3Exercise 4-8 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 followPart 2 of 2DirectLabor-HoursAnnualProductionper unit228,000Rims0.30polntsunits76,000unitsPosts0.60Additional information about the company follows:a. Rims require $17 in direct materials per unit, and Posts require $15.b. The direct labor wage rate is $15 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 ActivityEstimatedOverheadActivity Cost PoolMachine setupsActivity MeasureNumber of setupsSpecial processing Machine-hoursRimsTotalCostPosts30,400$145,160Direct labor-hours $728,0001202804002,0009,0002,00056,000General factory47,000Exercise 4-8 Part 22. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Roundyour final answers to 2 decimal places.)Answer is complete but not entirely correct.McGrawof 7PrevNext>36:25 PMO Type here to search7/20/2019

Question
Asked Jul 21, 2019
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Hello, I need help with this question. The work I did was

Rims:

Direct materials: 17

Direct Labor: 96.42857 (6.4285 * $15) 

Manufacturing overhead: 4.8405 (.3 DLHS * $16.135)

Unit Product Cost: 118.27

Posts:

Direct materials: 15

Direct Labor: 17.76315789 (1.184210526 * $15) 

Manufacturing overhead: 9.681 (.6 DLHS * $16.135)

Unit Product Cost: 42.44

Topic: Welcome to Summer
ACCT203 DL Syllabus Summ
Chapter 4. Activity-Based C
Chapter 4: Homework
b Introduction To Managerial
X
https://newconnect.mheducation.com/flow/connect.html
Chapter 4: Homeworki
Saved
Help
Save & Exit
Submit
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.
Return to question
3
Exercise 4-8 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
Part 2 of 2
Direct
Labor-Hours
Annual
Production
per unit
2
28,000
Rims
0.30
polnts
units
76,000
units
Posts
0.60
Additional information about the company follows:
a. Rims require $17 in direct materials per unit, and Posts require $15.
b. The direct labor wage rate is $15 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
Activity Measure
Number of setups
Special processing Machine-hours
Rims
Total
Cost
Posts
30,400
$145,160
Direct labor-hours $728,000
120
280
400
2,000
9,000
2,000
56,000
General factory
47,000
Exercise 4-8 Part 2
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.)
Answer is complete but not entirely correct.
Mc
Graw
of 7
Prev
Next>
3
6:25 PM
O Type here to search
7/20/2019
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Topic: Welcome to Summer ACCT203 DL Syllabus Summ Chapter 4. Activity-Based C Chapter 4: Homework b Introduction To Managerial X https://newconnect.mheducation.com/flow/connect.html Chapter 4: Homeworki Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Exercise 4-8 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 Part 2 of 2 Direct Labor-Hours Annual Production per unit 2 28,000 Rims 0.30 polnts units 76,000 units Posts 0.60 Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $15. b. The direct labor wage rate is $15 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 Activity Measure Number of setups Special processing Machine-hours Rims Total Cost Posts 30,400 $145,160 Direct labor-hours $728,000 120 280 400 2,000 9,000 2,000 56,000 General factory 47,000 Exercise 4-8 Part 2 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.) Answer is complete but not entirely correct. Mc Graw of 7 Prev Next> 3 6:25 PM O Type here to search 7/20/2019

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Expert Answer

Step 1

Unit product cost represents the total cost of producing one or a single unit. Calculation of unit product cost can be done either by dividing amount of total cost by the number of units manufactured or by adding per unit cost of direct material, overheads and direct labor.

Step 2

In this question, per unit cost will be calculated by adding up per unit cost of material, labor and overheads. Overhead cost (per unit) will be calculated. Material and labor cost (per unit) is given as follows:

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Product Post $15 per unit S9 per unit (S15 0.6) Particulars Product Rim sS17 per unit S4.5 per unit ($15 0.3) Direct material Direct labor (Labor rate per hour * Labor hours per unit)

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Step 3

Overhead cost per unit will be calculated by dividing total overhead cost incurred by both the product...

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Cost pools Ratio as per Total Product Rim Product Post given expected activity (Rims: Posts) 12:28 or 3:7 amount of cost (in $) 30,400 145,160 728,000 903,560 Machine set ups Special processing General factory Total overhead cost (A) Number of units (B) Overhead cost per unit (A/B) $21,280 S9,120 $145,160 2:0 0 $611,000 $632,280 76,000 $8.32 9:47 $117,000 $271,280 28,000 $9.69

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