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Direct Labor- Hours per Unit 0.70 0.30 Hubs Sprockets Annual Production 18,000 units 53,000 units Additional information about the company follows: a. Hubs require $38

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Direct Labor- Hours per Unit 0.70 0.30 Hubs Sprockets Annual Production 18,000 units 53,000 units Additional information about the company follows: a. Hubs require $38 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $17 per hour. C. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Estimated Overhead Expected Activity Cost Hubs 30 Activity Cost Pool (and Activity Measure) Machine setupe (number of setupa) Special processing (machine-hours) General factory (Direct labor-hours) $ 15,840 $ 120,000 $ 370,500 4,800 12,600 Sprockets 64 0 15,900 Total 144 4 .800 28,500 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Generator Required 2 > Direct Labor- Hours per Unit 0.70 0.30 Hubs Annual Production 18,000 units 53,000 units Sprockets Additional information about the company follows: a. Hubs require $38 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $17 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Expected Activity Hubs Sprockets Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 15,840 $ 120,000 $ 370,500 80 64 4.800 12,600 0 15,900 Total 144 4,800 28,500 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Hubs and Sprockets using activity based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Manufacturing overhead Unit product cost

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