Compute the activity rate for each activity cost pool. (Round your final answers
ID: 2491222 • Letter: C
Question
Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.)
Machine Setup
Secial Processing
General Factory
Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Unit Product Cost Of Rims =
Unit Product Cost Of Posts=
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:Explanation / Answer
Activity Measure Estimated Overhead cost Rims Posts Total Activity rate Cost allocated to rims Cost allocated to posts Number of setups 34,760 110 90 200 173.8 19118 15642 Machine-hours 136,670 1,000 0 1,000 136.67 136670 0 Direct labor-hours 819,000 9,000 54,000 63,000 13 117000 702000 Particulars Rims Posts Machine Setup 19118 15642 Special Processing 136670 0 General Factory 117000 702000 Total 272788 717642 Number of units 21000 79000 Overhead per unit 12.99 9.08 Direct material per unit 19 15 Labour charges per unit 3 10.5 Total product cost per unit 34.99 34.58
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