Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.60 15,000 units Sprockets 0.20 47,000 units Additional information about the company follows: Hubs require $31 in direct materials per unit, and Sprockets require $16. The direct labor wage rate is $12 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. 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) $ 30,420 130 104 234 Special processing (machine-hours) $ 126,000 3,600 0 3,600 General factory (organization-sustaining) $ 150,000 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.