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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Hubs Sprockets Annual Production 0.70

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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Hubs Sprockets Annual Production 0.70 12,000 units 0.30 59,000 units Additional information about the company follows: a. Hubs require $39 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $15 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: Estimated Activity Overhead Cost Hubs Sprockets Total $ 27.000 120 96 216 $164,500 4,700 0 4,700 $327,000 INA NA NA 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Required 1 Required 2

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