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:

1. Rims require $14 in direct materials per unit, and Posts require $10.
2. The direct labor wage rate is $18 per hour.
3. Rims are more complex to manufacture than Posts and they require special equipment.
4. 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

Exercise 4-8 Part 2

2. Determine the unit product cost of each product according to the ABC system.