Computing ABC Product Costs
Performance Products Corporation provides 2 assets, titanium Rims and also Posts. Data concerning the 2 assets follow:
Direct Labor-Hours Per Unit
More indevelopment around the company follows:
a. Rims call for $17 in direct material s per unit. and Posts require $10.
You are watching: Determine the unit product cost of each product according to the abc system
b. The direct labor wage rate is $16 per hour.
c.. Rims are even more complicated to manufacture than Posts, and also they need unique equipment.
d.. The ABC mechanism has actually the complying with task cost pools:
1. Compute the task price for each task expense pool.
See more: Why Was The Baby Ant Confused Answer Key, Why Was The Baby Ant Confused
2. Determine the unit price of each product according to the ABC system, consisting of straight products and also direct labor.
Activity rates are computed as follows:
Activity Cost Pool
(a)Estimated Overhead Cost
(a) ÷ (b)
$120 per setup
$45 per MH
$12 per DLH
Alternative ISBN: 9780077317768, 9780077317775, 9780077317782, 9780077317843, 9780077317850, 9780077420147, 9780077551544, 9780077629595, 9780077773304, 9781259249860
Alternate ISBN: 9780077317768, 9780077317775, 9780077317782, 9780077317843, 9780077317850, 9780077420147, 9780077551544, 9780077629595, 9780077773304, 9781259249860
Managerial Accounting (14th Edition) Edit editionSolutions for Chapter 7Problem 12E: Computing ABC Product CostsPerformance Products Corporation provides two products, titanium Rims and also Posts. File regarding the 2 products follow: Direct Labor-Hours Per UnitAnnual ProductionRims0.40.20,000 unitsPosts0.2080.000 unitsAdditional information around the firm follows:a. Rims require $17 in straight material s per unit. and also Posts need $10.b. The straight labor wage price is $16 per hour.c.. Rims are more facility to manufacture than Posts, and they require unique devices.d.. The ABC mechanism has actually the adhering to task price pools:Required:1. Compute the task price for each task price pool.2. Determine the unit cost of each product according to the ABC device, consisting of straight materials and direct labor.…