1. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour.

Unit Cost: Rims= _______

Posts= _______

High-Calibre Products Corporation makes two products: titanium rims and posts. Data regarding the two products follow: Direct Labour- Hours per Unit 0.30 0.15 Annual Production 34,000 units 150,000 units Rims Posts Additional information about the company follows: a. Rims require $20 in direct materials per unit, and posts require $13. b. The direct labour wage rate is $15 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 Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labour-hours Estimated Overhead Cost $37, 120 $278, 800 $850,200 Rims 170 6,800 10,200 Posts 150 0 22,500 Total 320 6,800 32,700