Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.70	13,000	units
Sprockets	0.30	50,000	units

Additional information about the company follows:

a.	Hubs require $29 in direct materials per unit, and Sprockets require $17.
b.	The direct labor wage rate is $19 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)

$

27,000

125

100

225

Special processing (machine-hours)

$

175,500

3,900

0

3,900

General factory (organization-sustaining)

$

219,100

NA

NA

NA

1. Compute the activity rate for each activity cost pool.

Activity Cost Pool	Activity Rate
Machine Setups		per setup
Special Processing		per MH

2. Determine the unit product cost of each product according to the ABC system.

	Hubs	Sprockets
Direct Materials	?	?
Direct Labor	?	?
Overhead	?	?
Unit Cost	?	?