EXERCISE 4-8 Computing ABC Product Costs LO4-2, LO4-3 Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per Unit 0.40 0.20 Annual Production 20,000 units 80,000 units Rims Posts.. Additional information about the company follows: a. b. c. d. Rims require $17 in direct materials per unit, and Posts require $10. The direct labor wage rate is $16 per hour Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Estimated Overhead Cost Activity Cost Pool Activity Measure Rims Posts Total Number of setups Machine-hours Direct labor-hours $21,600 $180,000 $288,000 100 4,000 8,000 80 0 16,000 180 4,000 24,000 Required: I. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system