EXERCISE $4-8$ Computing ABC Product Costs $\backslash (\backslash$square $\backslash )$ LO$4-2,$

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 $\backslash (\backslash$$ $17\backslash )$ in direct materials per unit, and Posts require $\backslash (\backslash$$ $10\backslash ).$

b$.$ The direct labor wage rate is $\backslash (\backslash$$ $16\backslash )$ 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 product cost of each product according to the ABC system.