Maurice Tutor

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Category > Accounting Posted 11 Aug 2017 My Price 12.00

Performance Products Corporation

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:

 

  Direct
Labor-Hours per Unit		 Annual
Production
Rims 0.60 21,000 units
Posts 0.20 50,000 units

 

Additional information about the company follows:
a. Rims require $27 in direct materials per unit, and Posts require $19.
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:

 

  Estimated Activity
Activity Cost Pool (and activity measure) Overhead Cost Rims Posts Total
Machine setups (number of setups) $ 34,020 135 108 243
Special processing (machine-hours) $ 216,000 4,800 0 4,800
General factory (direct labor-hours) $ 452,000 12,600 10,000 22,600

 

Required:
1. Compute the activity rate for each activity cost pool. (Omit the "$" sign in your response.)

 

Activity Cost Pool Activity Rate
Machine setups $ per setup
Special processing $ per MH
General factory $ per DLH

 

2.

Determine the unit cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

  Rims Posts
Direct materials $ $
Direct labor    
Overhead    
 
Unit cost $ $
 

I got the first part of the question but i cant figure out how to figure out the unit costs

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 04:08 PM My Price 12.00

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