Required information Exercise 4-8 Computing ABC Product Costs (L04-2, 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: Direct Labor-Hours per unit 0.40 0.70 Rims Posts Annual Production 18,000 units 77,000 units Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 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 Direct labor-hours Estimated Overhead Cost $ 30,030 $ 147,840 $ 576,000 Rims 120 2,000 7,000 Posts 80 0 29,000 Total 200 2,000 36,000 Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $11. b. The direct labor wage rate is $15 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 Direct labor-hours Estimated Overhead Cost $ 30,030 $ 147,840 $ 576,000 Rims 120 2,000 7,000 Posts 80 0 29,000 Total 200 2,000 36,000 Exercise 4-8 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH