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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products...

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Accounting

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:

  1. Rims require $10 in direct materials per unit, and Posts require $7.
  2. The direct labor wage rate is $17 per hour.
  3. Rims are more complex to manufacture than Posts and they require special equipment.
  4. The ABC system has the following activity cost pools:

Activity Cost Pool Activity Measure Estimated Activity
Estimated Overhead Cost Rims Posts Total
Machine setups Number of setups $ 25,080 80 220 300
Special processing Machine-hours $ 122,360 2,000 0 2,000
General factory Direct labor-hours $ 702,000 7,200 60,800 68,000

2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

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