Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow:RimsPostsDirect Labor-Hours per unit0.488.2020,000 units80,000 unitsAdditional 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 $16 per hour.c. Rims are more complex to manufacture than Posts and they require special equipment.d. The ABC system has the following activity cost pools:Activity Cost PoolMachine setupsSpecial processingGeneral factoryAnnualProductionUnit product cost of RimsUnit product cost of PostsActivity MeasureNumber of setups.Machine-hoursDirect labor-hoursEstimatedOverhead Cost$ 21,600$ 180,000$ 288,000Estimated ActivityRims1004,0008,000Posts80016,000Total1804,00024,0002. Determine the unit product cost of each product according to the ABC system. (Do not round Intermediate calculations. Roundyour final answers to 2 decimal places.)

Rims = $37.80Posts = $15.72Explanation:

Answered: Performance Products Corporation makes…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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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…
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