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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Hubs Sprockets Unit Production 0.70 25,000units

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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Hubs Sprockets Unit Production 0.70 25,000units 0.30 41,000units Additional information about the company follows a. Hubs require $38 in direct materials per unit, and Sprockets require $18 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 Activit Estimated Overhead Activity Cost Pool (Activity Measure) Cost Hubs Sprockets Total 104234 0 4,800 NA Machine setups (number of setups) Special processing (machine-hours) $ 23,400 13e $ 144,000 4,808 General factory (organization-sustaining) $ 140,500 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. Complete this question by entering your answers in the tabs below

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