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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours Annual per Unit Production 29,000 units 49,000 units

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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours Annual per Unit Production 29,000 units 49,000 units Hubs 0.90 0.50 Sprockets Additional information about the company follows: a. Hubs require $28 in direct materials per unit, and Sprockets require $17. b. The direct labor wage rate is $16 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 Estimated Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Cost Hubs Sprockets Total $ 18,360 85 68 153 $129,500 $271,100 Special processing (machine-hours) 3,700 3,700 General factory (organization-sustaining) 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2

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