Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production
Rims 0.70 22,000 units
Posts 0.70 79,000 units
Additional information about the company follows:
Rims require $17 in direct materials per unit, and Posts require $14.
The direct labor wage rate is $19 per hour.
Rims are more complex to manufacture than Posts and they require special equipment.
The ABC system has the following activity cost pools:
Estimated Activity
Estimated
Overhead
Activity Cost Pool Activity Measure Cost Rims Posts Total
Machine setups Number of setups 28,560 80 130 210
Special processing Machine-hours $159,600 6,000 0 6,000
General factory Direct labor-hours 680,000 10,000 30,000 40,000
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.)
Unit product cost of Rims
Unit product cost of Posts

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