Direct Labor-Hours per Unit Annual Production Hubs 19,000 units Sprockets 42,000 units 0.80 0.40 dditional information about the company follows: Hubs require $36 in direct materials per unit, and Sprockets require $12. The direct labor wage rate is $19 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Overhead Hubs Activity Sprockets Total 105 841 189 4,500 0 4,500 NA NA NA Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Cost $ 25,515 $ 135,000 $ 250,400