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Fogerty Company makes two products - Hubs and Sprockets. Data regarding the two products follow: table [ [ , Direct Labor - Hours, ]

Fogerty Company makes two products-Hubs and Sprockets. Data regarding the two products follow:
\table[[,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 company's activity-based absorption costing system has the following activity cost pools:
\table[[Activity Cost Pool (and Activi,Estimated Overhead,,cted Activi,],[Machine setups (number of setups),,Hubs,Sprockets,Total],[Special processing (machine-hours),$72,000,100,300,400],[General factory (Direct labor-hours),\table[[$200,000
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