Question

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 special equipment d. The ABC system has the following activity cost pools! Estimated Activity Posts Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 21.600 $ 180.se $288.000 Rims 180 4.800 8.000 4,00 24,000 16,00 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.) Unit product cost of Rims Unit product cost of Posts

Answer 1

				Rims		Posts
Cost pool	Overheads	Total Activity	Activity Rate = Overheads/Total Activity	Driver Consumption	Cost allocated = Activity Rate*Driver Consumed	Driver Consumption	Cost allocated = Activity Rate*Driver Consumed
Machine Setups	21,600	180	120	100	12,000	80	9,600
Special Processing	180,000	4,000	45	4,000	180,000	-	-
General Factory	288,000	24,000	12	8,000	96,000	16,000	192,000
			Total overheads		288,000		201,600
Calculation of Unit cost
	Rims	Posts
Direct material per unit	17	10
Direct labor	6.4	3.2
Overheads	14.40	2.52
Unit cost	37.8	15.72