Find unit product cost of Rims unit product cos of Posts Can anyone show how to

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Find

unit product cost of Rims

unit product cos of Posts

Can anyone show how to solve?

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[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 Annual Production 26,000 units 90,000 units Labor-Hours Rims Posts per unit 0.70 0.70 Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10 b. The direct labor wage rate is $18 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 Activity Cost Pool Machine setups Special processing General factory Activity Measure Rims Posts Total Cost $ 42,300 80 120 $162,000 4,000 936,000 4,000 200 4,000 Number of setups Machine-hours Direct labor-hours 4,000 48,000 52,000

Explanation / Answer

Statement showing computations Activity Cost Pool (Activity Measure) Estimated O/H cost Total Activity Cost per activity Activity of Rims O/H Allocated to Rims Activity of Posts O/H Allocated to Posts Machine setups (number of setups)                       42,300.00                             200.00                                         211.50               120.00             25,380.00                          80.00         16,920.00 Special processing (machine-hours)                       162,000.00                          4,000.00                                            40.50           4,000.00          162,000.00                                 -                          -   General factory                       936,000.00                       52,000.00                                            18.00           4,000.00             72,000.00                 48,000.00       864,000.00          259,380.00       880,920.00 Particulars Rims Posts No of units                       26,000.00                       90,000.00 Direct Materials Cost Rims = 14 *26,000 posts = 10*90,000                     364,000.00                     900,000.00 Direct Labour Cost Rimss = 26000 *.70 *18 Postts = 90000*.70 *18                     327,600.00                 1,134,000.00 Overheads: Machine Set Ups                       25,380.00                       16,920.00 Special Processing                     162,000.00 General factory                         72,000.00                     864,000.00 Total Costs                     950,980.00                 2,914,920.00 No of units                       26,000.00                       90,000.00 Costs per unit'                                36.58                                32.39

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