Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products...
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Accounting
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-Hours per unit
Annual Production
Rims
0.30
26,000 units
Posts
0.50
70,000 units
Additional information about the company follows:
Rims require $15 in direct materials per unit, and Posts require $11.
The direct labor wage rate is $15 per hour.
Rims are more complex to manufacture than Posts and they require special equipment.
The ABC system has the following activity cost pools:
Estimated Activity
Activity Cost Pool
Activity Measure
Estimated Overhead Cost
Rims
Posts
Total
Machine setups
Number of setups
$
32,900
60
140
200
Special processing
Machine-hours
$
114,800
4,000
0
4,000
General factory
Direct labor-hours
$
1,404,000
6,000
72,000
78,000
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 costs of posts:
Answer & Explanation
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