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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor- Hours per Annual Unit Production 0.50 11,000 units 0.10

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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor- Hours per Annual Unit Production 0.50 11,000 units 0.10 56,000 units Hubs Sprockets Additional information about the company follows: 0. Hubs require $40 in direct materials per unit, and Sprockets require $18. a. The direct labor wage rate is $15 per hour. b. Hubs require special equipment and are more complex to manufacture than Sprockets. c. 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) Estimated Activity Overhead Cost Hubs Sprockets Total $ 21,375 95 76 171 $ 246,000 4,100 0 4,100 $ 61,500 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.

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