Question
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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Additional information about the company follows: Rims require $34 in direct materials per unit, and Posts require $16. The direct labor wage rate is $14 per hour. Rims are more complex to manufacture than Posts, and they require special equipment. The ABC system has the following activity cost pools: Compute the activity rate for each activity cost pool. (Omit the "$" sign in your response.) Determine the unit cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Explanation / Answer
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Please find the answer as follows:
Part 1:
Part 2:
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Activity Cost Pool Activity Rate
Machine Set-Ups 115 per set up Special Processing 20 per MH General Factory 18 per DLH