[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 | 0.30 | 21,000 units |
Posts | 0.80 | 80,000 units |
Additional information about the company follows:
Estimated Activity | ||||||
Activity Cost Pool | Activity Measure | Estimated Overhead Cost |
Rims | Posts | Total | |
Machine setups | Number of setups | $ | 28,800 | 90 | 110 | 200 |
Special processing | Machine-hours | $ | 128,800 | 4,000 | 0 | 4,000 |
General factory | Direct labor-hours | $ | 1,008,000 | 3,000 | 60,000 | 63,000 |
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.)
Solution
Cost per Unit | |
Rims | $ 27.74 |
Posts | $ 36.40 |
Working
Calculation of Activity rates | |||||
Activity Cost Pool | Activity driver | Overhead Cost (A) | Expected Activity (B) | Activity rate (A/B) | |
Machine setups | Number of setup | $ 28,800 | 200 | $ 144.00 | Per setup |
Special processing | Number of machine hour | $ 128,800 | 4000 | $ 32.20 | Per machine hour |
General Factory | Number of Direct labor hour | $ 1,008,000 | 63000 | $ 16.00 | Per Direct labor hour |
.
Cost assigned to Rims | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Machine setups | $ 144.00 | 90.00 | $ 12,960 |
Special processing | $ 32.20 | 4,000.00 | $ 128,800 |
General Factory | $ 16.00 | 3,000.00 | $ 48,000 |
Total Overheads assigned | $ 189760.0 | ||
Production | 21,000.00 | ||
Overhead cost per unit | $ 9.04 |
.
Cost assigned to Posts | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Machine setups | $ 144.00 | 110 | $ 15,840 |
Special processing | $ 32.20 | 0 | $ 0 |
General Factory | $ 16.00 | 60000 | $ 960,000 |
Total Overheads assigned | $ 975,840 | ||
Production | 80,000.00 | ||
Overhead cost per unit | $ 12.20 |
.
ABC Costing | ||
Rims | Posts | |
Direct material | $ 13.00 | $ 9.00 |
Direct labor (Rate x labor hours per unit) | $ 5.70 | $ 15.20 |
Overheads | $ 9.04 | $ 12.20 |
Total Cost per unit | $ 27.74 | $ 36.40 |
[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium...
[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 0.50 25,000 units Posts 0.80 88,000 units Additional information about the company follows: Rims require $19 in direct materials per unit, and Posts require $17. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The...
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 2e Annual Production 20.00 units 80,000 units Posts Additional information about the company follows a Rims require 517 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $16 per hour Rims are more complex to manufacture than Posts and they require...
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 0.70 0.80 Annual Production 26.000 units 90,000 units 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 $20 per hour. c. Rims are more complex to manufacture than Posts and...
Петр 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 ®.20 Rims Posts Annual Production 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...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.70 26,000 units Posts 0.70 90,000 units Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $10. The direct labor wage rate is $18 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.40 20,000 units Posts 0.20 80,000 units Additional information about the company follows: Rims require $17 in direct materials per unit, and Posts require $10. The direct labor wage rate is $16 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.30 21,000 units Posts 0.50 74,000 units Additional information about the company follows: Rims require $15 in direct materials per unit, and Posts require $12. The direct labor wage rate is $16 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:...
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.20 0.70 Annual Production 21,000 units 79,000 units Rims Posts 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...
Performance Products Corporation makes two products, Titanium Rims and Posts. Data regarding the two products is provided in the following table: Direct Labor Hours per Unit Annual Production Rims 0.40 20,000 units Posts 0.20 80,000 units Additional information about the company follows: a. Rims require $17.00 in direct materials per unit, and Posts require $10.00. b. The direct labor wage rate is $16.00 per hour. c. Rims are more complex to manufacture than Posts, and they require special equipment. d....
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.70 20,000 units Posts 0.60 84,000 units Additional information about the company follows: Rims require $16 in direct materials per unit, and Posts require $12. 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:...