The following information applies to the questions displayed below Performance P

Question

The following information applies to the questions displayed below Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow Labor-Hours Annual Rims Posts 0.40 0.70 8,000 units 77,000 units Additional Information about the company follows: a. Rims require $14 in direct materials per unit, and Posts requlre $11. 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 activity cost pools Estimated Activity Estimated Overhead RimsPosts Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Cost Total $ 30030 $147.840 200 120 2.000 80 0 2000 $576.000 7000 29.000 36.000 2.00 points

Explanation / Answer

1 Activity cost pool Activity rate Machine setups 150.15 per setup =30030/200 Special processing 73.92 per MH =147840/2000 General factory 16 per DLH =576000/36000 2 Overhead allocated: Rims Posts Machine setups 18018 12012 Special processing 147840 General factory 112000 464000 Total overhead 277858 476012 Annual units 18000 77000 Overhead per unit 15.44 6.18 Rims Posts Direct materials 14 11 Direct labor 6 10.5 Overhead 15.44 6.18 Unit product cost 35.44 27.68 Unit product cost of Rims $35.44 Unit product cost of Posts $27.68

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.