Data regarding the two products follow:

	Direct Labor-Hours Per Unit	Annual Production
Hubs	0.70	10,000 Units
Sprockets	0.50	40,000 Units

Additional information about the company follows:

1. Hubs require $28 in direct materials per unit, and Sprockets require $16.
2. The direct labor wage rate is $20 per hour.
3. Hubs are more complex to manufacture than Sprockets and they require special equipment.
4. The ABC System has the following activity cost pools:

Activity Cost Pool (Activity Measure)	Estimated Overhead Cost	Activity Hubs Sprockets Total
Machine setups (number of setups)	$68,000	100	300	400
Special processing (machine-hours)	$250,000	5,000	0	5,000
General factory (organization-sustaining)	$816,000	NA	NA	NA

Required:

1. Compute the activity rate for each cost pool. Did you compute an activity rate for all of the activity cost pools? Why?
2. Determine the unit product cost of each product according to the ABC system.