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


Direct Labor-Hours per unit Annual Production

Rims 0.40 18,000 units

Posts 0.80 76,000 units


Additional information about the company follows:


a. Rims require $10 in direct materials per unit, and Posts require $7.

b. The direct labor wage rate is $17 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 Activity Measure Estimated Overhead Cost Rims Posts Total

Machine setups Number of setups $25,080 80 220 300

Special processing Machine-hours $122,360 2,000 0 2,000

General factory Direct labor-hours $702,000 7,200 60,800 68,000


Required:

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

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