Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products...
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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Direct Labor-Hours Annual per unit Production 29,000 0.30 units 86,000 0.20 units Posts Additional information about the company follows: a. Rims require $18 in direct materials per unit, and Posts require $14. 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: Total Estimated Activity Estimated Activity Overhead Measure Cost Rims Posts Number of $ 42,140 100 100 setups Machine-hours $ 131,580 2,000 0 Direct labor- 9,000 $1,479,000 78,000 hours Activity Cost Pool Machine setups Special processing General factory 200 2,000 87,000 Exercise 4-8 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 Unit product cost of Posts
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