Performance Products Corporationmakes two products, titanium Rims and Posts. Data regarding the two products follow:

	Direct Labor-Hours per unit	Annual Production
Rims	0.40	20,000 units
Posts	0.20	80,000 units

Additional information about the company follows:

1. Rims require $17 in direct materials per unit, and Posts require $10.
2. The direct labor wage rate is $16 per hour.
3. Rims are more complex to manufacture than Posts and they require special equipment.
4. The ABC system has the following activity cost pools:

Activity Cost Pool	Activity Measure	Estimated Activity
Estimated Overhead Cost	Rims	Posts	Total
Machine setups	Number of setups	$ 21,600	100	80	180
Special processing	Machine-hours	$ 180,000	4,000	0	4,000
General factory	Direct labor-hours	$ 288,000	8,000	16,000	24,000

1. Compute the activity rate for each activity cost pool.

Exercise 4-8 (Static) Part 2

2.Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

\begin{tabular}{|l|l|} \hline Unit product cost of Rims & \\ \hline Unit product cost of Posts \\ \hline \end{tabular}