Question

No results < > Options cation Saved Help Save Exercise 4-8 Computing ABC Product Costs [L04-2, L04-3] 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 Rims Annual Production 20,000 units 80,000 units Posts 0.20 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 and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity < Prev 9 10 of 15 8 Next > * a

Answer 1

Calculation f _Activity Rakes :- Machine Serup Overhead cost Machines sellele Toral Number of sehip $21,600 180 $ 120 pey series 845 pex MH Special - 11 Pocessing Overhead tosta Special Olxocessing Toral Machine hours 8180,000 4000 Gremexel $12 per DLH Ovechceo factory Tolal Direct Labowy hours $288000 24000 fallery 2 Calculatiom umik broduct cost Rims :- Direct Material (817% 20000 unit) $340,000 Dixect Labor ($16 X 8000 hours) & 128000 _ (0.40 x 20000 umits) Overhead Costs Machine Serep ($ 120 x 100 - 12000 Special buorossing (8 45x4000) - 180000 $288.000 Gemeral Favory' (8 12 X 8000) - 96000 8396,000 Toral' Broduir tost $884000 & No. of units . 20000 Umir Buo duch cost → 843.2 perumit Toral Product Cost 8 756,000 (340000 + 128000 + 288000) No. o umiks 20000 Umit Product Cost → $ 37.80 per unit

$ 800,000 8 256,000 I Posts :- Direct Material $ 10 X 80000 Direct labour $ 16 x 16000 (0.20 80000 units) Overhead (osts Machine Setub (120 x 80), 9600 Grecerexal factory (8 12 x 16000) - 192000 Toral Pueduct cost * Number ok umils Unit luoduct cost $201600 $1257600 + 80000 $15.72 per unit

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