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

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.

Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.80 0.40 Hubs Sprockets Annual Production 16,000 units 45,000 units Additional information about the company follows: a. Hubs require $37 in direct materials per unit, and Sprockets require $13. b. The direct labor wage rate is $14 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) Estimated Overhead Cost $ 27,000 $ 192,000 $ 282,800 Hubs 125 4,800 ftNA Activity Sprockets 100 0 NA Total 225 4,800 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. uired 2 Assessment Tool iFrame Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate per setup Machine setups Special processing per MH Required 1 Required 2 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 Direct labor Overhead Unit cost