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Fogerty Company makes two products titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor Hours per Unit Production 0.80 14,00e units 0.40

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Fogerty Company makes two products titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor Hours per Unit Production 0.80 14,00e units 0.40 46,000 units Annual Hubs Sprockets Additional information about the company follows: a. Hubs require $25 in direct materials per unit, and Sprockets require $18 b. The direct labor wage rate is $17 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: Estimated Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Overhead 25,740 $305,600 Cost 130 $209,000 3,800 NA Hubs Sprockets Total 234 0 3,800 NA 184 NA Required 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system

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