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

	direct labor hours per unit	annual production
Hubs	0.60	22,000 units
Sprockets	0.20	42,000 units

Additional information about the company follows:

1. Hubs require $20 in direct materials per unit, and Sprockets require $15.

2. The direct labor wage rate is $10 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	Activity	Activity
		Hubs	Sprockets	Total
Machine setups (number of setups)	$19,000	110	88	198
Special processing (machine hours)	$203,500	3,700	0	3,700
General factory	$172,800	N/A	N/A	N/A

Required:

1. Compute the activity rate for each activity cost pool (ANSWERED)

Activity Cost Pool	Activity rate	Activity rate
Machine setups	$100	per setup
Special processing	$55	per MH

*Please assist with 2*

2. Determine the unit product cost of each product according to the ABC system.

	Hubs	Sprockets
Direct materials	?	?
Direct labor	?	?
Overhead	?	?
Unit cost	?	?