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

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Accounting

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 53,000 units Additional information about the company follows: Hubs require $21 in direct materials per unit, and Sprockets require $16. The direct labor wage rate is $17 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. 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) $ 29,160 120 96 216 Special processing (machine-hours) $ 230,000 4,600 0 4,600 General factory (organization-sustaining) $ 73,200 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.

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