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	29,000	units
Sprockets	0.40	51,000	units

Additional information about the company follows:

a. Hubs require $25 in direct materials per unit, and Sprockets require $17.

b. The direct labor wage rate is $11 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:

	Estimated		Activity
Activity Cost Pool (Activity Measure)	Overhead Cost		Hubs	Sprockets	Total
Machine setups (number of setups)	$	25,920	120	96	216
Special processing (machine-hours)	$	253,000	4,600	0	4,600
General factory (organization-sustaining)	$	268,000	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.