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Required information Exercise 4-8 Computing ABC Product Costs (L04-2, L04-3) {The following information applies to the questions displayed below.) Performance Products Corporation makes two products,

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Required information Exercise 4-8 Computing ABC Product Costs (L04-2, L04-3) {The following information applies to the questions displayed below.) Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.20 0.70 Rims Posts Annual Production 21,000 units 79,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $15. b. The direct labor wage rate is $15 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 Total Posts 90 Estimated Overhead Cost $ 34,760 $ 136,670 $ 819,000 Activity Cost Pool Machine setups Special processing General factory 200 Activity Measure Number of setups Machine-hours Direct labor-hours Rims 110 1.000 9,000 1,000 63,000 54,000 b. The direct labor wage rate is $15 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 Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 34,760 $ 136,670 $ 819,000 Rims 119 1,000 9,000 Posts 90 e 54,000 Total 200 1,000 63, eee Exercise 4-8 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $15. b. The direct labor wage rate is $15 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 Posts 90 Activity Cost Pool Machine setups Special processing General factory Estimated Overhead Cost $34,760 $ 136,670 $ 819,000 Activity Measure Number of setups Machine hours Direct Labor-hours Rims 110 1,000 9,000 Total 200 1,000 63,000 54,000 Exercise 4-8 Part 2 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.) Unit product cost of Rims Unit product cost of Posts

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