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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.50	20,000	units
Sprockets	0.10	43,000	units

Additional information about the company follows:

1. Hubs require $26 in direct materials per unit, and Sprockets require $17.

2. The direct labor wage rate is $11 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)	$	28,980	115	92	207
Special processing (machine-hours)	$	105,000	3,500	0	3,500
General factory (organization-sustaining)	$	48,700	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:

machine setups ( ) per setup

special processing ( ).per MH

Required 2:

hubs sprokets

Direct material ( ). ( )

Direct labor ( ). ( )

Overhead ( ) ( )

Unit cost ( ) ( )