Exercise $1$

Performance Products Corporation makes two products, titanium Rims and

Posts. Data regarding the two products follow:

Additional information about the company follows

Rims require $$17$ in direct materials in unit, and Posts require $$10.$

The direct labor cost is $$6\mathrm{.}40$ per unit for rims, and $$3\mathrm{.}20$ per unit for posts.

The ABC system has the following activity cost pools:

Required:

a$)$ Compute the activity rate for each activity cost pool.

b$)$ Compute the manufacturing overhead cost per unit for Rims.

c$)$ Determine the unit product cost of Rims ${?}_{(}())$ according to the ABC system.