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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.60	25,000 units
Sprockets	0.20	55,000 units

Additional information about the company follows:

a. Hubs require $30 in direct materials per unit, and Sprockets require $17.

b. The direct labor wage rate is $13 per hour.

c. Hubs are more complex to manufacture than Sprockets and they require special processing.

d. The companys activity-based absorption costing system has the following activity cost pools:

	Estimated		Expected Activity
Activity Cost Pool (and Activity Measure)	Overhead Cost		Hubs	Sprockets	Total
Machine setups (number of setups)	$	31,320	145	116	261
Special processing (machine-hours)	$	245,000	4,900	0	4,900
General factory (Direct labor-hours)	$	520,000	15,000	11,000	26,000

Required:

1. Compute the activity rate for each activity cost pool.

2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing.