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 0.70 0.70 Annual Production 22,000 units 79,000 units Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $19 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 Cost Pool Machine setups Special processing General factory Estimated Activity Activity Measure. Number of setups Machine-hours Estimated Overhead Cost Rims Posts $ 27,650 80 $ 119,290 1,000 120 0 Direct labor-hours $ 616,000 15,400 55,300 Total. 200 1,000 70,700