Required information Exercise 4-8 (Algo) 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 Rims Posts Direct Labor- Hours per unit 0.70 0.70 Annual Production 26,000 units 90,000 units Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $18 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 Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours $ 42,300 $ 162,000 18,200 Estimated Overhead Cost Rims Posts Total 120 80 200 4,000 e 4,000 Direct labor-hours $ 936,000 63,000 81,200