Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Annual per unit Production Rims 0.60 26,000 units Posts 0.60 84,000 units Additional information about the company follows: 1. Rims require $17 in direct materials per unit, and Posts require $14. 2. The direct labor wage rate is $20 per hour. 3. Rims are more complex to manufacture than Posts and they require special equipment. 4. The ABC system has the following activity cost pools: 5. Estimated Activity Estimated Overhead Activity Cost Pool Activity Measure Cost Rims Posts Total Machine setups Number of setups $ 39,480 80 320 400 Special processing Machine-hours $ 146,160 3,000 3,000 General factory $ 1,092,000 Direct labor-hours 5,000 73,000 78,000 Compute the activity rate for each activity cost pool. Machine Setups Special Processing General factory per setup per MH per DLH

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Annual per unit Production Rims 0.60 26,000 units Posts 0.60 84,000 units Additional information about the company follows: 1. Rims require $17 in direct materials per unit, and Posts require $14. 2. The direct labor wage rate is $20 per hour. 3. Rims are more complex to manufacture than Posts and they require special equipment. 4. The ABC system has the following activity cost pools: 5. Estimated Activity Estimated Overhead Activity Cost Pool Activity Measure Cost Rims Posts Total Machine setups Number of setups $ 39,480 80 320 400 Special processing Machine-hours $ 146,160 3,000 3,000 General factory $ 1,092,000 Direct labor-hours 5,000 73,000 78,000 Compute the activity rate for each activity cost pool. Machine Setups Special Processing General factory per setup per MH per DLH

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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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…
[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units Additional information about the company follows: Rims require $14 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 EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2…
[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.60 0.60 Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $20 per hour. Activity Cost Pool Machine setups Special processing General factory c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Annual Production Activity Cost Pool Machine setups Special processing General factory 26,000 units 84,000 units $ 14.00 Activity Measure Number of setups Machine-hours Direct labor-hours X Answer is not complete. Activity Rate Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Estimated Overhead Cost $ 39,480 $…
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units Additional information about the company follows: Rims require $14 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 EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000 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.)
Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.48 8.20 20,000 units 80,000 units Additional Information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. 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: Activity Cost Pool Machine setups Special processing General factory Annual Production Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups. Machine-hours Direct labor-hours Estimated Overhead Cost $ 21,600 $ 180,000 $ 288,000 Estimated Activity Rims 100 4,000 8,000 Posts 80 0 16,000 Total 180 4,000 24,000 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…
! Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow. Direct Labor- Hours per unit 0.60 0.60 Rims Posts Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $20 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 Cost Pool Machine setups Special processing General factory Annual Production 26,000 units 84,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours $ Estimated Overhead Cost $39,480 $ 146,160 $ 1,092,000 36.31 Estimated Activity Rims 80 3,000 15,600 Posts 320 0 50,400 2. Determine the unit product cost of each product according to the ABC…
Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts: Direct Labor- Hours per unit 0.40 0.60 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: Activity Cost Pool Machine setups Special processing General factory Annual Production 26,000 units 88,000 units Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours. Estimated Overhead Cost $28,160 $ 164,560 $ 780,000 Estimated Activity Rims 110 2,000 10,400 Posts 90 0 52,800 Total 200 2,000 63,200 2. Determine the unit product cost of each product…
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs Sprockets Additional information about the company follows: a. Hubs require $36 in direct materials per unit, and Sprockets require $10. b. The direct labor wage rate is $13 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: 0.80 0.40 Annual Production 20,000 units 50,000 units Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Required 1 Required 2 Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special…