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 Units 21,000 Units Sprockets 0.30 Units 48,000 Units Additional information about the company follows: a. Hubs require $23 in direct materials per unit, and Sprockets require $20. b. The direct labor wage rate is $17per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The ABC system has the following activity cost pools Activity cost pool (Activity measure) Overhead

Cost Hubs Sprockets total

Machine set up ( Number of set ups) $28,350 150 120 270 Special processing ( Machine hours) $216,000 4,800 0 4,800 General factory (Direct labor hours) $115,500 NA NA NA Required: 1. Compute the activity rate(i.e predetermined overhead state) for each activity cost pool. 2. Determine the unit cost of each product according to the ABC system.