1. Compute rates for pools.

2. Determine UNIT product cost of each product.

Ex 6-13 - FOGERTY COMPANY Hubs Sprockets Annual DLH/unit production 0.80 10,000 0.40 40,000 Hubs Sprockets $ 32.00 $ 18.00 $ 15.00 /hour DM cost Wage rate Pools Machine setups (# setups) Spec. processing (# MH) General factory (NA) Total 400 Activity levels Hubs Sprockets 100 300 5,000 n/a Req'd 1 - Compute rates for pools per setup Est. cost $ 72,000 200,000 816,000 $ 1,088,000 5,000 per MH n/a 2. Determine UNIT product cost of each product. For this part of the problem, it will be easiest to find the total cost assigned to Hubs and total cost assigned to Sprockets and then divide by the number of units of each product. Hubs Sprockets Direct materials Direct labor Setup costs Sp. Proc. Costs TOTAL costs assigned $ $ #units Cost/Unit #DIV/0! #DIV/0