Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:

	Direct Labor-Hours per unit	Annual Production
Rims	0.70	26,000 units
Posts	0.70	90,000 units

Additional information about the company follows:

a. Rims require $14 in direct materials per unit, and Posts require $10.

b. The direct labor wage rate is $18 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:

		Estimated Activity
Activity Cost Pool	Activity Measure	Estimated Overhead Cost		Rims	Posts	Total
Machine setups	Number of setups	$	42,300	120	80	200
Special processing	Machine-hours	$	162,000	4,000	0	4,000
General factory	Direct labor-hours	$	936,000	4,000	48,000	52,000

3.

value: 3.75 points

Required information

Required:
1.	Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.)
	Activity Cost Pool Activity Rate Machine set ups _____ per set ups Special processing ____ per MH General factory _____ per DHL

References

eBook & Resources

WorksheetLearning Objective: 03-02 Compute activity rates for an activity-based costing system.

Difficulty: 2 MediumLearning Objective: 03-03 Compute product costs using activity-based costing.

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4.

value: 3.75 points

Required information

2.	Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculation. Round your final answers to 2 decimal places.)
	Unit product cost of rims : Unit product cost of posts: