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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

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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 Annual Production 26,000 units 90,000 units Labor-Hours Rims Posts per unlt 0.70 0.80 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 $20 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 Acivity Estimated Overhead CostRims S 33,300 $ 172,800 3,000 Activity Measure Posts Total Activity Cost Pool Machine setups Special processing 230 300 0 3,000 858,000 5,000 73000 78,000 Number of setups Machine-hours 70 General factory Direct labor-hours $

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