Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:...
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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Rims Posts 0.80 0.60 Annual Production 19,000 units 86,000 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 setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims Posts Total $ 39,560 80 120 200 $ 140,180 2,000 2,000 Direct labor-hours $ 532,000 15,200 51,600 66,800 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.) Unit product cost of Rims $ 25.00 Unit product cost of Posts Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Rims Posts 0.80 0.60 Annual Production 19,000 units 86,000 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 setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims Posts Total $ 39,560 80 120 200 $ 140,180 2,000 2,000 Direct labor-hours $ 532,000 15,200 51,600 66,800 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.) Unit product cost of Rims $ 25.00 Unit product cost of Posts
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To calculate the unit product cost of Rims and Posts according to the ABC system we need to allocate ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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