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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor Hours per Hubs Sprockets Unit 0.90 0.50 Annual

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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor Hours per Hubs Sprockets Unit 0.90 0.50 Annual Production 27,000 units 50,000 units Additional information about the company follows: a. Hubs require $22 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $18 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets d. The ABC system has the following activity cost pools: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost $25,875 Hubs Activity Sprockets Total 125 100 225 $115,000 $499,300 4,600 e NA NA 4,600 NA 2. Determine the unit product cost of each product according to the ABC system.

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