Part I

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

$\backslash$table$[[,$Direct Labor Hours per Unit,Annual Production$],[$Rims$,0\mathrm{.}40,20,000$ units$],[$Posts$,0\mathrm{.}20,80,000$ units$]]$

Additional information about the company follows:

a$.$ Rims require $$17\mathrm{.}00$ in direct materials per unit, and Posts require $$10\mathrm{.}00.$

b$.$ The direct labor wage rate is $$16\mathrm{.}00$ per hour.

c$.$ Rims are more complex to manufacture than Posts, and they require special equipment.

d$.$ The Activity Based Costing $($ABC$)$ System has the following activity cost pools:

$\backslash$table$[[$Activity Cost Pool,Activity Measure,$\backslash$table$[[$Estimated Overhead$],[$Cost$]],$Rims,Posts,$\backslash$table$[[$Total Activity for$],[$Rims and Posts$]]],[$Machine Setups,$\backslash$table$[[$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]]$

Required $-$ Use the tables on the following page to determine the following required components:

In order to receive full credit please show all work!!

Compute the activity rate for each activity pool.

Determine the amount of manufacturing overhead assigned to each product $($Rims and Posts$)$ for each activity cost pool.

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