Tahoe Manufacturing makes two products, titanium Hubs and Sprockets. Data regarding the two products follows: DLHrs per unit Annual Production Hubs Sprockets 0.80 10,000 0.40 40,000 Additional information about the company follows: 0 Hubs required $32 in direct materials per unit and Sprockets require $18. The direct labor wage rate is $15 per hour. Hubs are more complex to manufacture than Sprockets and they require special equipment. In preparation for an ABC system, the company has developed the following activity cost pools. Activity Activity Cost Pool Measure Estimated Activity Activity. Overhead Total Activity- Hubs Sprockets Costs Machine Number of $72,000 400 100 300 Setups setups Special Machine $200,000 5,000 5,000 Processing hours General Direct $816,000 24,000 8,000 I 16,000 Factory labor hours