Fogerty Company makes two productsHubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.90 17,000 units Sprockets 0.50

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Fogerty Company makes two productsHubs and Sprockets. Data regarding the two products follow:

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.90	17,000	units
Sprockets	0.50	41,000	units

Additional information about the company follows:

1. Hubs require $34 in direct materials per unit, and Sprockets require $18.
2. The direct labor wage rate is $17 per hour.
3. Hubs are more complex to manufacture than Sprockets and they require special processing.
4. The companys activity-based absorption costing system has the following activity cost pools:

Activity Cost Pool (and Activity Measure)	Estimated Overhead Cost	Expected Activity
		Hubs	Sprockets	Total
Machine setups (number of setups)	$ 22,500	125	100	225
Special processing (machine-hours)	$ 200,000	4,000	0	4,000
General factory (Direct labor-hours)	$ 608,600	15,300	20,500	35,800

Required:

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

2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing.