How do determine the unit product cost of each product

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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 0.30 29,000 units Posts 0.20 86,000 units Additional information about the company follows: Rims require $18 in direct materials per unit, and Posts require $14. The direct labor wage rate is $16 per hour. Rims are more complex to manufacture than Posts and they require special equipment.

The ABC system has the following activity cost pools:

Estimated     Activity Activity Cost Pool        Activity Measure              Estimated Overhead         Cost Rims Posts T                  otal

Machine setups Number of setups                       $ 42,140                       100                        100                                    200

Special processing Machine-hours                         $ 131,580                   2,000                         0                             2,0000

Question 1: Determine the unit product cost of each product according to the ABC system.

Reference no: EM132598755

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