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Artyom0805 [142]
3 years ago
15

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Lab

or-Hours per unit Annual Production Rims 0.20 21,000 units Posts 0.70 79,000 units Additional information about the company follows: Rims require $19 in direct materials per unit, and Posts require $15. The direct labor wage rate is $15 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 Total Machine setups Number of setups $ 34,760 110 90 200 Special processing Machine-hours $ 136,670 1,000 0 1,000 General factory Direct labor-hours $ 819,000 9,000 54,000 63,000
Required:
Compute the activity rate for each activity cost pool.
Business
1 answer:
alina1380 [7]3 years ago
5 0

Answer:

Machine setups= $173.8 per setup

Special processing= $136.67 per machine hour

General factory= $13 per direct labor hour

Explanation:

<u>To calculate the activities cost rates, we need to use the following formulas:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine setups= 34,760 / 200= $173.8 per setup

Special processing= 136,670 / 1,000= $136.67 per machine hour

General factory= 819,000 / 63,000= $13 per direct labor hour

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8 0
2 years ago
Given the following information for Smith Company's Northern Division, what is the division's EBITDA margin?
erma4kov [3.2K]

Answer:

EBITDA margin is 55.58%

Explanation:

EBITDA margin is computed as;

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4 0
3 years ago
Marvin Corporation has the following information reported on the balance sheet as of December 31, 2017 Common Stock, $10 par val
SCORPION-xisa [38]

Answer:

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C. 3,000

Explanation:

Treasury stock, are those that the company repurchase from the market and keep it in the company, in this case the company keep the shares in the accounting and the shares could be reissued in the future.

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Then in the Treasury Stock account are registered the shares that the company repurchases from the market, these are, 6,000 shares.

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