High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products...
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High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow: Direct Labour- Hours per Unit 0.40 0.20 Rims Posts Annual Production 36,000 units 160,000 units Additional information about the company follows: a. Rims require $22 in direct materials per unit, and posts require $15. b. The direct labour wage rate is $13 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 Activity Measure Number of setups Machine-hours Direct labour-hours Activity Cost Pool Machine setups Special processing General factory Estimated Overhead Cost $38,760 $280, 800 $1,299, 200 Posts 160 Rims 180 7,200 14,400 Total 340 7,200 46,400 32,000 Required: 1. Compute the activity rate for each activity cost pool. Activity Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH 2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour. (Round your intermediate calculations and final answers to 2 decimal places.) Rims Posts Unit cost
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