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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.60	14,000	units
Sprockets	0.20	54,000	units

Additional information about the company follows:

1. Hubs require $32 in direct materials per unit, and Sprockets require $18.

2. The direct labor wage rate is $18 per hour.

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

4. The ABC system has the following activity cost pools:

Activity Cost Pool (Activity Measure)	Estimated Overhead Cost	Activity
		Hubs	Sprockets	Total
Machine setups (number of setups)	$ 24,750	110	88	198
Special processing (machine-hours)	$ 80,000	4,000	0	4,000
General factory (organization-sustaining)	$ 138,000	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.