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

Direct

Labor-Hours per UnitAnnual

ProductionHubs0.9027,000unitsSprockets0.5046,000units

Additional information about the company follows:

1. Hubs require $37in direct materials per unit, and Sprockets require $10.
2. The direct labor wage rate is $16per hour.
3. Hubs require special equipment and are more complex to manufacture than Sprockets.
4. The ABC system has the following activity cost pools:

EstimatedActivityActivity Cost Pool (Activity Measure)Overhead CostHubsSprocketsTotalMachine setups (number of setups)$23,76012096216Special processing (machine-hours)$171,0003,80003,800General factory (organization-sustaining)$438,300NANANA

1. Compute the activity rate for each activity cost pool.

2. Determine the unit product cost of each product according to the ABC system.