Required:

Compute the activity rate for each activity cost pool. $($Round your answers to $2$ decimal places.$)$

 

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[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 Direct Labor- Hours per unit 0.40 0.60 Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 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 Annual Production 26,000 units. 88,000 units Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours. Activity Rate Estimated Overhead Cost $ 28,160 $164,560 $ 780,000 per setup per MH per DLH Estimated Activity Rims 110 2,000 10,400 Required: Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Posts 90 0 52,800 Total 200 2,000 63,200 [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 Direct Labor- Hours per unit 0.40 0.60 Additional information about the company follows: a. Rims require $20 in direct materials per unit, and Posts require $18. b. The direct labor wage rate is $18 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 Annual Production 26,000 units. 88,000 units Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours. Activity Rate Estimated Overhead Cost $ 28,160 $164,560 $ 780,000 per setup per MH per DLH Estimated Activity Rims 110 2,000 10,400 Required: Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Posts 90 0 52,800 Total 200 2,000 63,200

Answer rating: 100% (QA)

To compute the activity rate for each activity cost pool we need to divide the total cost of each ac... View the full answer