Question: *Precise steps showing how this problem is solved would be very appreciated!* Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products



*Precise steps showing how this problem is solved would be very appreciated!*
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit 0.50 0.10 Hubs Sprockets Annual Production 19,000 units 54,000 units Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $17 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 15,390 $ 247,500 $ 149,000 Expected Activity Hubs Sprockets Total 95 76 171 4,500 4,500 9,500 5,400 14,900 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. Complete this question by entering your answers in the tabs below.
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