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

	Direct Labor - Hours per unit	Annual Production
Hubs	0.60	23000 units
Sprockets	0.20	51000 units

Additional information about the company follows:

a. Hubs require $37 in direct materials per unit, and Sprockets require $15.

b. The direct labor wage rate is $14 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 Overhead Cost	Hubs Activity	Sprockets Activity	Total Activity
Machine Setups (# of setups)	$23760	110	88	198
Special processing (machine-hours)	$136500	3900	0	3900
General factory (organization-sustaining)	$177000	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.