Performance Products Corporation makes two products, Titanium Rims and Posts. Data regarding the two products...
70.2K
Verified Solution
Question
Accounting
Performance Products Corporation makes two products, Titanium Rims and Posts. Data regarding the two products is provided in the following table:
| Direct Labor Hours per Unit | Annual Production |
Rims | 0.40 | 20,000 units |
Posts | 0.20 | 80,000 units |
Additional information about the company follows:
- Rims require $17.00 in direct materials per unit, and Posts require $10.00.
- The direct labor wage rate is $16.00 per hour.
- Rims are more complex to manufacture than Posts, and they require special equipment.
- The Activity Based Costing (ABC) System has the following activity cost pools:
Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Rims | Posts | Total Activity for Rims and Posts |
Machine Setups
|
Number of Machine Setups |
$21,600 |
100 |
80 |
180 |
Special Processing
|
Machine Hours |
$180,000 |
4,000 |
0 |
4,000 |
General Factory
|
Direct Labor Hours |
$288,000 |
8,000 |
16,000 |
24,000 |
- Determine the unit product cost of each product (Rims and Posts) according to the ABC system - Please show your work so I can better understand the answer :)
Rims | Posts | |
|
| |
Direct materials: |
|
|
|
|
|
|
|
|
|
| |
Direct labor: |
|
|
|
|
|
|
|
|
|
| |
Manufacturing Overhead: |
|
|
|
|
|
|
|
|
|
|
|
Unit cost |
|
|
|
|
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.