Question $3$:

Fogerty Company makes two products$-$titanium Hubs and Sprockets. Data regarding the two products follow:

$\backslash$table$[[,$Direct Labor$-$Hours per Unit,Annual Production$],[$Hubs$,0\mathrm{.}70,21,000$ units$],[$Sprockets$,0\mathrm{.}30,42,000$ units$]]$

Additional information about the company follows:

a$.$ Hubs require $$38$ in direct materials per unit, and Sprockets require $$18.$

b$.$ The direct labor wage rate is $$17$ 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:

$\backslash$table$[[,,,$Activity$],[$Activity Cost Pool $($Activity Measure$),$Estimated Overhead Cost,Hubs,Sprockets,Total,$],[$Machine setups $($number of setups$),$$$32,760,130,104,234,],[$Special processing $($machine$-$hours$),$$$264,000,4,800,0,4,800,],[$General factory $($organization$-$sustaining$),$$$115,500,$NA$,$NA$,$NA$,]]$

Required:

Compute the activity rate for each activity cost pool.

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