FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-
Hours per unit
Rims
Posts
0.40
0.60
Annual
Production
26,000 units
88,000 units
Chec
Additional information about the company follows:
a. Rims require $20 in direct materials per unit, and Posts require $18.
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
Machine setups
Special processing
General factory
Activity Measure
Number of setups
Machine-hours.
Estimated
Overhead Cost
$ 28,160
Rims
110
Posts
90
Total
200
$ 164,560
2,000
0
2,000
Direct labor-hours
$ 780,000
10,400
52,800
63,200
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
I Init product cost of Docte
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