80.2K

Verified Solution

Link Copied!

Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow. Direct Labor- Hours per Annual Unit Production 0.60 15,000 units 0.20 43,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $37 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $18 per hour. c. Hubs require special equipment and are more complex to manufacture than Sprockets. d. The ABC system has the following activity cost pools: Activity Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 23,085 $225,500 $138,000 Hubs 135 4,100 NA Sprockets Total 108 243 @ 4,100 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing Activity Rate per setup per MH Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 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

Answer & Explanation Solved by verified expert

See Answer