ch 4 gr hw 5,6

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 Direct Labor- Hours per unit 0.30 0.20 Additional Information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. b. The direct labor 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 Activity Cost Pool Machine setups Special processing General factory Exercise 4-8 (Algo) Part 1 Activity Cost Pool Annual Production 29,000 units 36,000 units Machine setups Special processing General factory Activity Measure Number of setups Machine-hours. Direct labor-hours. Estimated Overhead Cost $ 42,140 $ 131,500 $ 1,479,000 Activity Rate: per setup per MH per DLH Estimated Activity Rims Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 100 2,000 8,700 Posts 100 e 17,200 Total 200 2,000 25,900 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 Direct Labor- Hours per unit 0.30 0.20 Additional information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. b. The direct labor 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: Activity Cost Pool Machine setups Special processing General factory Annual Production 29,000 units 86,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 42,140 $ 131,580 $ 1,479,000 Estimated Activity Rims 100 2,000 8,700 Posts 100 e 17,200 Total 200 2,000 25,900 Exercise 4-8 (Algo) 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.)