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 Annual per unit 0.30 Production Rims 27,000 units Posts 0.50 75,000 units Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. 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: Estimated Activity Estimated Overhead Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Cost Rims Posts Total $ 30,000 $ 121,500 $ 756,000 100 50 150 Machine-hours 6,000 6,000 54,000 Direct labor-hours 9,000 45,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Activity Rate per setup Special processing per MH General factory per DLH

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 Annual per unit 0.30 Production Rims 27,000 units Posts 0.50 75,000 units Additional information about the company follows: a. Rims require $12 in direct materials per unit, and Posts require $10. 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: Estimated Activity Estimated Overhead Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Cost Rims Posts Total $ 30,000 $ 121,500 $ 756,000 100 50 150 Machine-hours 6,000 6,000 54,000 Direct labor-hours 9,000 45,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Activity Rate per setup Special processing per MH General factory 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 Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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 0.40 0.80 Annual Production 18,000 units 76,000 units Rims Posts Additional information about the company follows: a. Rims require $10 in direct materials per unit, and Posts require $7. b. The direct labor wage rate is $17 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 Mach ine setups Special process ing General factory Activity Measure Number of setups Mach ine-hours Direct labor-hours Estimated Overhead Cost $ 25,080 $ 122,360 $ 702,000 Rims 80 2,000 7,200 Total 300 2,000 68,000 Posts 220 60,800 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
[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…
es ! 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 0.50 0.80 Annual Production 25,000 units Rims Posts 88,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $17. b. The direct labor wage rate is $15 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 Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 26,400 $ 163,680 $ 500,000 Estimated Activity Rims 70 4,000 12,500 Posts 430 0 70,400 Total 500 4,000 82,900 2. Determine the unit product cost of each product…
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 0.70 0.60 Annual Production 20,000 units 84,000 units Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $15 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 Rims $ 28,560 80 $ 159,600 6,000 Posts 130 0 Total 210 6,000 Direct labor-hours $ 680,000 14,000 50,400 64,400 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
[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 $…
! 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 Rims Posts 0.20 0.70 Annual Production 21,000 units 79,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $15. b. The direct labor wage rate is $15 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 Rims $ 34,760 $ 136,670 Direct labor-hours $ 819,000 110 1,000 4,200 Posts 90 0 Total 200 55,300 1,000 59,500 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
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 0.70 0.80 Annual Production Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 per hour. Activity Cost Pool Machine setups Special processing General factory 26,000 units 90,000 units c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 33,300 $ 172,800 $ 858,000 Estimated Activity Rims 70 3,000 18,200 Posts 230 0 72,000 Total 300 3,000 90,200 2. Determine the unit product cost of each product…
Fogerty Company makes two products-itanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit Annual Production Hubs e.70 13,e00 units Sprockets e.30 50,e00 units Additional Information about the company follows: a. Hubs require $30 In direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $19 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: Activity Sprockets 80 Estinated Overhead Total 180 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (nachine-hours) General factory (organization-sustaining) Cost Hubs $ 19,880 $ 110,e00 $ 144,180 100 4,400 NA 4,400 NA NA 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.…
Required information Skip to question [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 Annual Production Rims 0.60 26,000 units Posts 0.60 84,000 units Additional information about the company follows: Rims require $17 in direct materials per unit, and Posts require $14. The direct labor wage rate is $20 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Activity Cost Pool Activity Measure Estimated Activity Estimated Overhead Cost Rims Posts Total Machine setups Number of setups $ 39,480 80 320 400 Special processing Machine-hours $ 146,160 3,000 0 3,000 General factory Direct labor-hours $ 1,092,000 15,600 50,400 66,000 What us the unit cost ofposts
Barkes, Incorporated, manufactures and sells two products: Product BO and Product B5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product B0 Product B5 Total direct labor-hours Total Direct Expected Hours Per Labor- Production Unit Hours 400 7.0 500 4.0 Activity Cost Pools Labor-related Production orders Order size Direct Labor- The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product BO and $118.90 for Product B5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost Activity Measures DLHs orders MHS 2,800 2,000 4,800 $ 136,944 64,629 588,294 $ 789,867 Product B0 Product B5 2,800 2,000 500 400 3,300 3,000 Total 4,800 900 6,300 The total overhead applied to Product BO under activity-based costing is closest to: (Round your…
Nole, Incorporated, manufactures and sells two products: Product W8 and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product W8 Product NO Total direct labor-hours Total Direct Labor-Hours 900 11,000 11,900 The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 176.40 $ 280.50 Product W8 Product NØ Expected Production 100 1,000 Activity Cost Pools Labor-related Machine setups Order size Direct Labor- Hours Per Unit 9.0 11.0 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expect Activity Product NO 11,000 400 4,200 Multiple Choice Activity Measures DLHS setups MHS Estimated Overhead Cost $461,720 25,865 796,220 $ 1,283,805 The overhead applied to each unit of Product W8 under…