Question: High Calibre Products Corporation makes two products titanium rims and posts

High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow:
Additional information about the company follows:
a. Rims require $17 in direct materials per unit, and posts require $10.
b. The direct labour 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:
Required:
1. Compute the activity rate for each activity cost pool.
2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour.



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  • CreatedJuly 08, 2015
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