Lorie Metals Corporation makes two products, titanium Rims and Posts. Data regarding the two products...
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Accounting
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:
| Estimated Activity | ||||||
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Rims | Posts | Total | |
| Machine setups | Number of setups | $ | 34,310 | 100 | 100 | 200 |
| Special processing | Machine-hours | $ | 113,150 | 1,000 | 0 | 1,000 |
| General factory | Direct labor-hours | $ | 1,218,000 | 4,000 | 83,000 | 87,000 |
Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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