EXERCISE 713 Computing ABC Product Costs L073, L074 Fogerty Company makes two products titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours Annual Production per Unit 0.80 Hubs ... Sprockets .. 10,000 units 40,000 units 0.40 Additional information about the company follows: a. Hubs require $32 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 Sprockets Total Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining). Estimated Overhead Cost Hubs $72,000 100 $200,000 5,000 $816,000 NA 300 0 NA 400 5,000 NA Required: 1. Compute the activity rate for each activity cost pool. Did you compute an activity rate for all of the activity cost pools? Why? 2. Determine the unit product cost of each product according to the ABC system