EXERCISE 4–8 Computing ABC Product Costs LO4–2, LO4–3 Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:

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:

Required:

1. Compute the activity rate for each activity cost pool.

page 180 2. Determine the unit product cost of each product according to the ABC system.