Required:

1.

Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.)

2.	Determine the unit product cost of each product according to the ABC system.

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Annual Production 21,000 units 80,000 units Labor-Hours Rims Posts per unit 0.30 0.80 Additional information about the company follows: a. Rims require $13 in direct materials per unit, and Posts require $9 b. The direct labor wage rate is $19 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: Estimated Activity Estimated Overhead Cost $ 28,800 Activity Cost Pool Machine setups Special processing General factory Activity Measure Rims Posts Total 90 $128,800 4,000 110 0 200 4,000 63,000 Number of setups Machine-hours 1,008,000 Direct labor-hours 3,000 60,000