Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit 0.60 0.20 Rims Posts 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 $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 Exercise 4-8 (Algo) Part 1 Annual Production 22,000 units 80,000 units Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 27,200 $ 130,400 $ 1,056,000 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 Rins Posts 280 0 120 5,000 13,200 16,000 Total 400 5,000 29,200 rt 2 of 2 4 ints eBook Print References Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Houre per unit 0.60 0.20 Rims Posta 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 $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 Annual Production 22,000 units 80,000 unita Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setupa Machine-hours Direct labor-hours Estinated Overhead Cont $ 27,200 $130,400 $ 1,056,000 Estimated Activity Rima Posts 200 0 120 5,000 13,200 16,000 Total 400 5,000 29,200 Exercise 4-8 (Algo) Part 2 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.)
