Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production
Rims 0.80 29,000 units
Posts 0.80 73,000 units
Additional information about the company follows:
Rims require $20 in direct materials per unit, and Posts require $18.
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 Total
Machine setups Number of setups $ 34,310 100 100 200
Special processing Machine-hours $ 113,150 1,000 0 1,000
General factory Direct labor-hours $ 1,218,000 4,000 83,000 87,000
Exercise 4-8 Part 2
2. Determine the unit product cost of each product according to the ABC system.
Unit product cost of Rims
Unit product cost of Posts

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business.identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats.implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the