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 0.30 0.50 27,000 units Rims Posts 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: Activity Cost Pool Machine setups Special processing General factory Activity Cost Pool Annual Production Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 30,000 $ 121,500 $ 756,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) per setup per MH per DLH Estimated Activity Rims 100 6,000 8,100 Posts 50 0 37,500 Total 150 6,000 45,600
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 0.30 0.50 27,000 units Rims Posts 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: Activity Cost Pool Machine setups Special processing General factory Activity Cost Pool Annual Production Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 30,000 $ 121,500 $ 756,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) per setup per MH per DLH Estimated Activity Rims 100 6,000 8,100 Posts 50 0 37,500 Total 150 6,000 45,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Visno
![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
0.30
0.50
Additional information about the company follows:
a. Rims require $12 in direct materials per unit, and Posts require $10.
b. The direct labor
Activity Cost Pool
Machine setups
Special processing
General factory
Annual
Production
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
27,000 units
75,000 units
Machine setups
Special processing
General factory
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Activity Rate
Estimated
Overhead Cost
$ 30,000
$ 121,500
$ 756,000
per setup
per MH
per DLH
Estimated Activity
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Rims
100
6,000
8,100
Posts
50
10
37,500
Total
150
6,000
45,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa2f4feda-2e3e-42a0-91c7-da9d282b3ff8%2F566e384c-125a-4f46-a26e-510d0a0378f6%2Fy6jm61q_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
0.30
0.50
Additional information about the company follows:
a. Rims require $12 in direct materials per unit, and Posts require $10.
b. The direct labor
Activity Cost Pool
Machine setups
Special processing
General factory
Annual
Production
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
27,000 units
75,000 units
Machine setups
Special processing
General factory
Activity Measure
Number of setups
Machine-hours
Direct labor-hours
Activity Rate
Estimated
Overhead Cost
$ 30,000
$ 121,500
$ 756,000
per setup
per MH
per DLH
Estimated Activity
Required:
1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Rims
100
6,000
8,100
Posts
50
10
37,500
Total
150
6,000
45,600
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education