Question: solve this question as soon as possible. URGENT HELP REQUIRED. i'll surely give u Thumbs up. 2.3 Performance Products Corporation makes two products, titanium Rims
2.3 Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Annual per Unit Production Rims ...0.40 20,000 units Posts 0.20 80,000 units Additional information about the company follows: a) Rims require $17 in direct materials per unit, and Posts require $10. 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 (and activity measure) Machine setups (number of setups) Special processing (machine-hours) General factory (direct labor-hours) Estimated Overhead Cost $21,600 $180,000 $288,000 Rims 100 4,000 8,000 Activity Posts Total 80 180 0 4,000 16,000 24,000 Required: a. Compute the activity rate for each activity cost pool. (06) b. Determine the unit cost of each product according to the ABC system, including direct materials and direct labor. (09)
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