Exercise 7-13 (Algo) Computing ABC Product Costs (L07-3, L07-4) Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor. Hours per Annual Unit Production 0.70 24,000 units 8.30 58,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $15 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 26,910 $148,000 $277,800 104 Hubs 130 3,700 NA Sprockets Total 234 0 3,700 NA NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing Activity Rate per setup per MH