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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.60	16,000 units
Sprockets	0.20	49,000 units

Additional information about the company follows:

1. Hubs require $23 in direct materials per unit, and Sprockets require $17.
2. The direct labor wage rate is $12 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	Hubs	Sprockets	Total
Machine Setups (number of setups)	$21,000	100	80	180
Special Processing (machine-hours)	$184,000	4,600	0	4,600
General Factory (organization-sustaining	$176,200	N/A	N/A	N/A

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.