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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.70	17,000 units
Sprockets	0.30	57,000 units

Additional information about the company follows:

a. Hubs require $28 in direct materials per unit, and Sprockets require $14.

b. The direct labor wage rate is $19 per hour.

c. Hubs are more complex to manufacture than Sprockets and they require special processing.

d. The companys activity-based absorption costing system has the following activity cost pools:

	Estimated		Expected Activity
Activity Cost Pool (and Activity Measure)	Overhead Cost		Hubs	Sprockets	Total
Machine setups (number of setups)	$	25,740	130	104	234
Special processing (machine-hours)	$	140,000	4,000	0	4,000
General factory (Direct labor-hours)	$	203,000	11,900	17,100	29,000

Required:

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

2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing.