Computing ABC Product CostsPerformance Products Corporation makes two products, titanium R...

Computing ABC Product Costs

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

Additional information about the company follows:

a. Rims require $17 in direct material s per unit. and Posts require $10.

b. The direct labor wage rate is $16 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:

Required:

1. Compute the activity rate for each activity cost pool.

2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labor.