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

Direct Labor-Hours per UnitAnnual ProductionHubs0.7015,000unitsSprockets0.3055,000units

Additional information about the company follows:

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

2. The direct labor wage rate is $13 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:

EstimatedActivityActivity Cost Pool (Activity Measure)Overhead CostHubsSprocketsTotalMachine setups (number of setups)$24,795145116261Special processing (machine-hours)$198,0004,40004,400General factory (organization-sustaining)$291,000NANANA

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.