Management Accounting ACC2233
Assignment 1
Student Name: Tasneem Alenezi
IDs: 2017-00404
Question1) refer to your book CH3: Activity-Based Costing and answer Exercise3-8 page 149.
Performance Products Corporation makes two products, titanium Rims and Posts. Data
regarding the two products follow:
1.
Machine setups - $21,600/180 = $120 per setup
Special Processing - $180,000/4000 = $45 per machine hour
General factory - $288,000/24,000 = $12 per direct labor hour
2.
Cost element ……………….…. Rims……. Posts
Direct Materials ……………….17.00….. $10.00
Direct labor………..…16X.40= 6.4…….…..3.2
Overheads……………………14.4…….….2.52
Unit cost………………………37.8……..15.72