Exercise 4-8 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: Direct Labor-Hours. per unit Rims Posts: 0.40 0.20 80,000 units Annual Production 20,000 units 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: Activity Cost Pool. Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Exercise 4-8 Part 1 Required: 1. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate. per setup per MH per DLH Estimated Activity Estimated Overhead Cost Rims Posts Total $ 21,600 $ 180,000 $288,000 100 4,000 8,000 80 0 180 4,000 16,000 24,000