Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Hubs Sprockets Unit 0.70 0.30 Annual Production 25,000 units 48,000 units Additional Information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $12 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 Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost Hubs Activity Sprockets $ 13,680 80 64 $ 107,500 4,300 $ 262,300 NA Total 144 4,300 NA 2. Determine the unit product cost of each product according to the ABC system. 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 Machine setups Special processing Activity Rate per setup per MH < Required 1 Required 2 >