$\backslash$table$[[,$Direct Labor$-$Hours$],[,$per Unit,Annual Production$],[$Hubs$,0\mathrm{.}80,10,000$ units$],[$Sprockets$,0\mathrm{.}40,40,000$ units$]]$

Additional information about the company follows:

a$.$ Hubs require $$32$ in direct materials per unit, and Sprockets require $$18.$

b$.$ The direct labor wage rate is $$15$ per hour.

c$.$ Hubs are more complex to manufacture than Sprockets and require special processing.

d$.$ The company's activity$-$based absorption costing system has the following activity cost pools:

$\backslash$table$[[,$Estimated Overhead,Expected Activity$],[$Activity Cost Pool $($and Activity Measure$),$Cost,Hubs,Sprockets,Total$],[$Machine setups $($number of setups$),$$$72,000,100,300,400],[$Special processing $($machine$-$hours$),$$$200,000,5,000,5,000,],[$General factory $($direct labor$-$hours$),$$$816,000,8,000,16,000,24,000]]$

Required:

Compute the activity rate for each activity cost pool.

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.

Required $1$

Compute the activity rate for each activity cost pool.

Activity Cost Pool

Activity Rate