EXERCISE 7-7 Computing ABC Product Costs [L03. L04] Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs . 0.80 10,000 units Sprockets . 0.40 40,000 units 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 are more complex to manufacture than Sprockets and they require special processing. d. The ABC system has the following activity cost pools: ActMty Cost Pool (and Activity Measure) Est. Overhead Hubs Sprockets Total Machine setups (number of setups) 72,000 100 300 400 Special processing (machine-hours) 200,000 5,000 0 5,000 General factory (Direct labor-hours) 816,000 8,000 16,000 24,000 Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labor