Exercise 4-8 (Algo) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow Rims Posts Direct Labor- Hours per unit 0.30 0.50 Annual Production 26,000 units 70,000 units Additional information about the company follows: a. Rims require $15 in direct materials per unit, and Posts require $11. b. The direct labor 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: A Estimated Activity Estimated Overhead Cost Rims Posts $ 60 4,000 7,800 140) 35,000 Total 200 4,000 42,800 Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours $ 32,900 114,800 $ 1,404,000