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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.60	12,000	units
Sprockets	0.20	40,000	units

Additional information about the company follows:

1. Hubs require $27 in direct materials per unit, and Sprockets require $11.

2. The direct labor wage rate is $15 per hour.

3. Hubs require special equipment and are more complex to manufacture than Sprockets.

4. 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)	$	22,680	120	96	216
Special processing (machine-hours)	$	209,000	3,800	0	3,800
General factory (organization-sustaining)	$	151,200	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.

Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate per setup Machine setups Special processing per MH Required 1 Required 2 Determine the unit product cost of each pro your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead Unit cost