Question: Exercise 4-8 Computing ABC Product Costs (L04-2, L04-3) [The following information applies to the questions displayed below.) Performance Products Corporation makes two products, titanium Rims
Exercise 4-8 Computing ABC Product Costs (L04-2, L04-3) [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. Direct Labor-HOUS per unit 0.80 0.60 Rins Posts Annual Production 19.000 units B6,000 units Additional information about the company follows: a. Rims require $13 in direct materials per unit, and Posts require $9. 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 activity Cost Pool Machine setup special processing General factory Activity Measure Number of setupa Machine-hours Direct labor-hours Estimated Overhead Cost $ 39,560 140,180 5.532.000 Rims 80 2,000 3,000 Posta 120 0 35.000 Total 200 2,000 38.000 Exercise 4-8 Part 1 Required: 1. Compute the activity rate for each activity cost pool (Round your answers to 2 decimal places.) Activity Control Machines Special processing General factory Activity Rate per setup Der MH pe DLH
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
