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 materials 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 directlabor.

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Direct per Unit 0.40 Labor-Hours Annual Production Rims.... Posts 20,000 units 80,000 units 0.20 Estimated Overhead Activity Activity Cost Pool Activity Measureost Rims Posts Total Machine setups Number of setups $21,600 100 Special processingMachine-hours $180,000 4,000 General factory ..u._.. 80 180 0 4,000 Direct labor-hours $288,000 8,000 16,000 24,000