Question

3 part "required" question pleaae answer all the required parts per they are relaying on one another

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.40 0.20 Rims Annual Production 20,000 units 80,000 units Posts Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $16 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Posts Estimated Overhead Cost $ 21,600 $ 130,000 $ 288,000 Activity Measure Number of setups Machine hours. Direct labor hours Rims 100 4.000 8,000 Total 180 4.000 24,000 16,000 Required: 1. Compute the activity rate for each activity cost pool Activity Cost Pool Machine setups Special processing General factory Activity Rate Dor Soup per MH oor DLH.

Answer 1

Activity Rate = Estimated Overheads/Estimated Activity
Machine Setups	120	per set up
Special Processing	45	per machien hour
General Factory	12	per DLH
	Rims	Posts
Direct material per unit	17	10
Direct labor per unit	6.4	3.2
Overheads
Machine Setups	12000	9600
Special Processing	180000	0
General Factory	96000	192000
Total overheads	288000	201600
Overhead per unit	14.4	2.52
Unit product cost	37.8	15.72

B =21600/180 per set up =180000/4000 per machien hour =288000/24000 per DLH А 1 Activity Rate = Estimated Overheads/Estimated Activity 2 Machine Setups 3 Special Processing 4 General Factory 5 6 7 Direct material per unit 8 Direct labor per unit 9 Overheads 10 Machine Setups 11 Special Processing 12 General Factory 13 Total overheads 14 Overhead per unit 15 Unit product cost Rims 17 =16*0.4 Posts 10 =16*0.2 =B2*100 =B2*80 =B3*4000 =B4*8000 =B4*16000 =SUM(B10:B12) =SUM(C10:C12) =B13/20000 =C13/80000 =B7+B8+B14 =C7+C8+C14