Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.90 22,000 units 0.50 54,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $19 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 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 15,840 $207,000 $370, 800 Hubs Sprockets Total 80 64 144 4,600 0 4,600 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. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials $ 30.00 $ 16.00 Direct labor Overhead Unit cost $ 30.00 $ 16.00 AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component Variable Component per Job $ 276 per Month Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses $ 32 $ 2 $ 8,400 $ 5,000 $ 2,300 $ 1,580 $ 2,850 $ 960 Actual Total for February $ 27,610 $ 8,250 $ 8,360 $ 2,370 $ 1,650 $ 2,850 375 $ 1 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $32 per job, and the actual mobile lab operating expenses for February were $8,360. The company expected to work 110 jobs in February, but actually worked 112 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget 112 Planning Budget Jobs Revenue $ 27,610 8,250 Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses 8,360 2,370 1,650 Insurance 2,850 Miscellaneous expenses 375 Total expense 23,855 Net operating income $ 3,755