Exercise 4-8 (Static) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow Annual Production 20,000 units Rims Posts 80,000 units 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: Activity Cost Pool Machine setups Special processing General factory Direct Labor- Hours per unit 0.40 0.20 Exercise 4-8 (Static) Part 1 Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Required: 1. Compute the activity rate for each activity cost pool. Direct labor-hours Activity Rate per setup per MH per DLH Estimated Overhead Cost $ 21,600 $ 180,000 $ 288,000 Estimated Activity Rims 100 4,000 8,000 Posts 80 0 16,000 Total 180 4,000 24,000

Exercise 4-8 (Static) Computing ABC Product Costs [LO4-2, LO4-3] [The following information applies to the questions displayed below] 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: Exercise 4-8 (Static) Part 1 Required: 1 Compute the activity rate for each activity cost pool