Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled: Direct Labor-Hours per unit Annual Production 20,000 units 80,000 units Deluxe 0.4 Standard 0.2 Additional information follows: a. Deluxe models require $17 in DM per unit and Standard models require $10. b. The DL wage rate is $16 per hour. c. Deluxe models are more complex to manufacture than Standard models, and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost pool Activity Measure Estimated Activity Overhead Deluxe Standard Total Cost Machine setups Special processing General factory Number of setups Machine-hours $21,600 $180,000 $288,000 100 80 180 4,000 4,000 24,000 DL-hrs 8,000 16,000 Required: 1- Compute the activity rate for each activity cost pool

Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled: Direct Labor-Hours per unit Annual Production 20,000 units 80,000 units Deluxe 0.4 Standard 0.2 Additional information follows: a. Deluxe models require $17 in DM per unit and Standard models require $10. b. The DL wage rate is $16 per hour. c. Deluxe models are more complex to manufacture than Standard models, and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost pool Activity Measure Estimated Activity Overhead Deluxe Standard Total Cost Machine setups Special processing General factory Number of setups Machine-hours $21,600 $180,000 $288,000 100 80 180 4,000 4,000 24,000 DL-hrs 8,000 16,000 Required: 1- Compute the activity rate for each activity cost pool

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Description: Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxemodel. The following activity and cost information has been compiled:Direct Labor-Hours per unitAnnual ProductionDeluxe0.420,000 unitsStandard0.280,000 unitsAd

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13EA: Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total...

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Performance Products Corporation makes two products, titanlum Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.48 8.20 20,000 units 80,000 units 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: Activity Cost Pool Machine setups Special processing General factory Annual Production Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups. Machine-hours Direct labor-hours Estimated Overhead Cost $ 21,600 $ 180,000 $ 288,000 Estimated Activity Rims 100 4,000 8,000 Posts 80 0 16,000 Total 180 4,000 24,000 2. Determine the unit product cost of each product according to the ABC system. (Do not round Intermediate calculations. Round your final answers to 2…
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Fogerty Company makes two products-itanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit Annual Production Hubs e.70 13,e00 units Sprockets e.30 50,e00 units Additional Information about the company follows: a. Hubs require $30 In direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $19 per hour. C. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Sprockets 80 Estinated Overhead Total 180 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (nachine-hours) General factory (organization-sustaining) Cost Hubs $ 19,880 $ 110,e00 $ 144,180 100 4,400 NA 4,400 NA NA Required: 1. Compute the activity rate for each activity cost pool. 2 Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below.…