Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.60 26,000 units Posts 0.60 84,000 units Additional information about the company follows: Rims require $17 in direct materials per unit, and Posts require $14. The direct labor wage rate is $20 per hour. Rims are more complex to manufacture than Posts and they require special equipment. 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 $ 39,480 80 320 400 Special processing Machine-hours $ 146,160 3,000 0 3,000 General factory Direct labor-hours $ 1,092,000 15,600 50,400 66,000 What us the unit cost ofposts
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.60 26,000 units Posts 0.60 84,000 units Additional information about the company follows: Rims require $17 in direct materials per unit, and Posts require $14. The direct labor wage rate is $20 per hour. Rims are more complex to manufacture than Posts and they require special equipment. 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 $ 39,480 80 320 400 Special processing Machine-hours $ 146,160 3,000 0 3,000 General factory Direct labor-hours $ 1,092,000 15,600 50,400 66,000 What us the unit cost ofposts
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
| Direct Labor-Hours per unit | Annual Production | |
|---|---|---|
| Rims | 0.60 | 26,000 units |
| Posts | 0.60 | 84,000 units |
Additional information about the company follows:
- Rims require $17 in direct materials per unit, and Posts require $14.
- The direct labor wage rate is $20 per hour.
- Rims are more complex to manufacture than Posts and they require special equipment.
- 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 | $ 39,480 | 80 | 320 | 400 |
| Special processing | Machine-hours | $ 146,160 | 3,000 | 0 | 3,000 |
| General factory | Direct labor-hours | $ 1,092,000 | 15,600 | 50,400 | 66,000 |
What us the unit cost ofposts
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