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

	Direct Labor-Hours per Unit	Annual Production
Hubs	0.70	17,000	units
Sprockets	0.30	58,000	units

Additional information about the company follows:

1. Hubs require $38 in direct materials per unit, and Sprockets require $16.

2. The direct labor wage rate is $14 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:

	Estimated		Activity
Activity Cost Pool (Activity Measure)	Overhead Cost		Hubs	Sprockets	Total
Machine setups (number of setups)	$	26,910	115	92	207
Special processing (machine-hours)	$	140,000	4,000	0	4,000
General factory (organization-sustaining)	$	255,500	NA	NA	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.

Compute the activity rate for each activity cost pool.

	Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH

Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Hubs Sprockets Direct materials Direct labor Overhead Unit cost $0.00 $0.00

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