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Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.30 21,000

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

Direct Labor-Hours per unit Annual Production
Rims 0.30 21,000 units
Posts 0.50 74,000 units

Additional information about the company follows:

  1. Rims require $15 in direct materials per unit, and Posts require $12.
  2. The direct labor wage rate is $16 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 $ 37,000 120 280 400
Special processing Machine-hours $ 146,520 4,000 0 4,000
General factory Direct labor-hours $ 672,000 10,000 32,000 42,000

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

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