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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.80	17,000	units
Sprockets	0.40	52,000	units

Additional information about the company follows:

Hubs require $28 in direct materials per unit, and Sprockets require $20.

The direct labor wage rate is $18 per hour.

Hubs require special equipment and are more complex to manufacture than Sprockets.

The ABC system has the following activity cost pools:

	Estimated		Activity
Activity Cost Pool (Activity Measure)	Overhead Cost		Hubs	Sprockets	Total
Machine setups (number of setups)	$	23,085	95	76	171
Special processing (machine-hours)	$	192,000	4,800	0	4,800
General factory (organization-sustaining)	$	408,800	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.

Activit Estimated Overhead Cost $ 23,085 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Hubs Sprockets Total 95 $192,000 4,800 NA 76 0 4,800 NA $408,800 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 Complete this question by entering your answers in the tabs below. Required1Required2 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 28.00 20.00 14.40 7.20 2.40$27.20