Exercise 7-13 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 Annual Unit Production Hubs 0.90 23,000 units Sprockets 0.50 54,000 units Additional information about the company follows: a. Hubs require $21 in direct materials per unit, and Sprockets require $11. b. The direct labor wage rate is $20 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special equipment. d. The ABC system has the following activity cost pools: Activity Estimated Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) 22,770 110 198 88 Special processing (machine-hours) 230,000 4,600 4,600 560,700 General factory (organization-sustaining) NA NA Required 1. Compute the activity rate for each activity cost pool. Activity Cost Activity Rate Poo per Machine setups setu per MH Special processing