High-Calibre 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 materials per unit, and posts require $10.
b. The direct labour 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 labour.

Transcribed Image Text:

Direct Labour- Hours per Unit Annual Production 20,000 units 80,000 units Rims... Posts.... 0.40 0.20 020