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: a. Rims require $17.00 in direct materials per unit, and Posts require $10.00. b. The direct labor wage rate is $16.00 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: Activity Cost Pool Aclivity Measure Estimated Rims Posts Total Activity for Overhead Cost Rims and Posts Machine Setups $21,600 100 80 180 Number of Machine Setups 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: lo order to receive full credit please show all work!! 1. Compute the notivity rate for each activity pool. 2. Determine the amount of manufacturing overhead assigned to each product (Rime and Posts for ecoh activity cost pool 3. Determine the unit product cost of each procluot Rims and Posts) according to the ABC system Compute the activity rate for each activity pool. Activity Cost Pool Estimated Overhead Cost Machine Setups Expected Activity Activity Rate Special Processing General Factory 2. Overhead is assigned to the two products as follows: Rims: Activity Cost Pool Machine Setups Activity Rate Activity ABC Cost Special Processing General Factory Total Factory Overhead Posts: Activity Cost Pool Machine Setups Activity Rate Activity ABC Cost Special Processing General Factory Total Factory Overhead Determine the total and unit product cost of each product (Rims and Posts) coccrding to the ABC system Rims Posts Direct materials: Direct labor Manufacturing Overhead: Unit cost Part II 1. Ustand describe the steps in order for implementing Activity Bosed and Costing 2. Identity and describe the limitations of Activity Based Costing