Question

Normal No Spac... Heading! Heading 2 Title Font Paragraph Select Editing Styles 1. Compute the activity rate for each activity pool Activity Cost Pool Estimated Overhead Cost Machine Setups $21.500 Expected Activity Comprehensive Problem II - Worth 50 points Part 1 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 Activity Beste Special Processing $120.000 4000 General factory 0.40 20.000 un 80.000 units 2. Overhead is assigned to the two products as follows: Rime Activity Rate Adanalommation about the company follows: Rims 317.50 in direct material per unit, and Posts require $10.00 The dret labor wage rate is 116.00 per hour Rims are more complex to manufacture than Posts, and they require special equipment The Activity Based Costing IABC Dystem has the following stivity cost pools: Activity Cost Pool Machine Setups Special Processing Activity Col Pool Activity Megwe Rims Estimated Overhead Cost Posts Total Aclively for Rims and Posts General Factory Machine Setups Number of $21.600 100 180 Total Factory Overhead Special Proces 5180.000 4.000 4.000 Posts General Factory Direct LODO HO $238.000 3.000 15.000 24.000 Machine Sus Reque s thetoties on the towing page to determine the foowing required components In order to receive crede please show alworld Special Processing General Factory Dela Oro D Del n o mang ved great prodana Pets OO p roduto com and Powering to the Total Factory Overhead D Focus wpe here to search O Re Ga :

Answer 1

1. Compute the activity rate for each activity pool Estimated Activity cost pool Expected Activity Activity Rate Overhead Cost Machine Setups $ 21,600.00 180 $ 120.00 Special Processing $ 1,80,000.00 4000 $ 45.00 General Factory $ 2,88,000.00 24000 $ 12.00 2. Overhead is assigned to the two products as follows Rims: Activity Cost Pool Machine Setups Special Processing General Factory Total Factory Overhead Activity Rate $ 120.00 $ 45.00 $ 12.00 Activity ABC Cost 1001 $ 12,000.00 4000 $ 1,80,000.00 8000 $ 96,000.00 $ 2,88,000.00 Posts: Activity Cost Pool Machine Setups Special Processing General Factory Total Factory Overhead Activity Rate $ 120.00 $ 45.00 12.00 Activity | ABC Cost 80$ 9,600.00 0 $ 16000 $ 1,92,000.00 $ 2,01,600.00

ABC Cost for ever cost pool is determined as:

ABC Cost = Activity Rate * Number of Activities