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Fogerty Company makes two products titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor - Hours per Unit Annual Production Hubs 0

Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:
Direct Labor-Hours per Unit Annual Production
Hubs 0.5011,000 units
Sprockets 0.1046,000 units
Additional information about the company follows:
Hubs require $34 in direct materials per unit, and Sprockets require $17.
The direct labor wage rate is $10 per hour.
Hubs require special equipment and are more complex to manufacture than Sprockets.
The ABC system has the following activity cost pools:
Activity Cost Pool (Activity Measure) Estimated Overhead Cost Activity
Hubs Sprockets Total
Machine setups (number of setups) $ 27,00012096216
Special processing (machine-hours) $ 122,5004,90004,900
General factory (organization-sustaining) $ 88,300 NA NA 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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