Solution
Cost per Unit | |
Rims | $ 34.99 |
Posts | $ 34.58 |
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 | $ 34,760 | 200 | $ 173.80 | Per setup |
Special processing | Number of machine hour | $ 136,670 | 1000 | $ 136.67 | Per machine hour |
Genegal factory | Number of Direct labor hour | $ 819,000 | 63000 | $ 13.00 | Per Direct labor hour |
.
Cost assigned to Rims | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Machine setups | $ 173.80 | 110.00 | $ 19,118 |
Special processing | $ 136.67 | 1,000.00 | $ 136,670 |
General factory | $ 13.00 | 9,000.00 | $ 117,000 |
Total Overheads assigned | $ 272788.0 | ||
Production | 21,000.00 | ||
Overhead cost per unit | $ 12.99 |
.
Cost assigned to Posts | |||
Activity name | Activity Rates | Activity | ABC Cost |
(A) | (B) | (A x B) | |
Machine setups | $ 173.80 | 90 | $ 15,642 |
Special processing | $ 136.67 | 0 | $ 0 |
General factory | $ 13.00 | 54000 | $ 702,000 |
Total Overheads assigned | $ 717,642 | ||
Production | 79,000.00 | ||
Overhead cost per unit | $ 9.08 |
.
ABC Costing | ||
Rims | Posts | |
Direct material | $ 19.00 | $ 15.00 |
Direct labor (Rate x labor hours required) | $ 3.00 | $ 10.50 |
Overheads | $ 12.99 | $ 9.08 |
Total Cost per unit | $ 34.99 | $ 34.58 |
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:...
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:...
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 0.70 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 0.30 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:...
Amazon Korie Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.80 29,000 units Posts 0.80 73,000 units Additional information about the company follows: Rims require $20 in direct materials per unit, and Posts require $18. 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 0.40 18,000 units Posts 0.80 76,000 units Additional information about the company follows: Rims require $10 in direct materials per unit, and Posts require $7. The direct labor wage rate is $17 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 0.70 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:...
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 18,000 units Posts 0.60 77,000 units Additional information about the company follows: Rims require $12 in direct materials per unit, and Posts require $8. 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:...
Lorie Metals Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.80 29,000 units Posts 0.80 73,000 units Additional information about the company follows: Rims require $20 in direct materials per unit, and Posts require $18. 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 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....