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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.70	22,000	units
Sprockets	0.30	46,000	units

Additional information about the company follows:

a) Hubs require $37 in direct materials per unit, and Sprockets require $12.

b) The direct labor wage rate is $18 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:

	Estimated		Activity
Activity Cost Pool (Activity Measure)	Overhead Cost		Hubs	Sprockets	Total
Machine setups (number of setups)	$	15,300	85	68	153
Special processing (machine-hours)	$	180,000	4,500	0	4,500
General factory (organization-sustaining)	$	277,600	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.

Require 1

Required 2

Required2 Required1 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups Special processing per setup per MH