Question: Required: Compute the activity rate for each activity cost pool. ( Round your answers to 2 decimal places. ) [The following information applies to the

Required:

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


[The following information applies to the questions displayed below] Performance Products Corporation

 

[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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

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

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!