Exercise 2A-1 Activity-Based Absorption Costing [LO2-5] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hubs Hours per Unit 0.80 Annual Production 29,000 units Sprockets 0.40 53,000 units Additional information about the company follows: a. Hubs require $25 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $19 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 Expected Activity Overhead Activity Cost Pool (and Activity Measure) Machine setups (number of setups) $ Cost 13,500 Hubs Sprockets Total Special processing (machine-hours) $ 102,500 General factory (Direct labor-hours) $ 666,000 75 4,100 23,200 60 135 0 4,100 21,200 44,400 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. Answer is complete but not entirely correct. 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 $ 100 per setup Special $ 25 per processing MH General factory $ 15 per DLH < Required 1 Required 2 >