Part I

Performance Products Corporation makes two products, Titanium Rims and Posts. Data regarding the two products is provided in the following table:

	Direct Labor Hours per Unit	Annual Production
Rims	0.40	20,000 units
Posts	0.20	80,000 units

Additional information about the company follows:

1. Rims require $17.00 in direct materials per unit, and Posts require $10.00.
2. The direct labor wage rate is $16.00 per hour.
3. Rims are more complex to manufacture than Posts, and they require special equipment.
4. The Activity Based Costing (ABC) System has the following activity cost pools:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost	Rims	Posts	Total Activity for Rims and Posts
Machine Setups	Number of Machine Setups	$21,600	100	80	180
Special Processing	Machine Hours	$180,000	4,000	0	4,000
General Factory	Direct Labor Hours	$288,000	8,000	16,000	24,000

3. Determine the total and unit product cost of each product (Rims and Posts) according to the ABC system.

	Rims	Posts
Direct materials:
Direct labor:
Manufacturing Overhead:
Unit cost