Silved Labor Hours per Unit 0.60 0.20 Hubs Sprockets Annual Production 27,000 units 52,000 units Additional information about the company follows: a. Hubs require $39 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $11 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 Activity Total Activity Cost Pool (Activity Heasure) Machine setups (number of setups) Special processing machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 19,665 $ 94,000 $ 161,800 Hubs 95 4,700 NA Sprockets 76 0 MA 171 4,700 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 Prev Next