15 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct...
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15 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per 142 points ellook Hubs Sprockets Unit 0.70 0.30 Annual Production 21,000 units 40,000 units Additional information about the company follows: a. Hubs require $25 in direct materials per unit, and Sprockets require $14 b. The direct labor wage rate is $17 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 Cost Pool (Activity Measure) Special processing (machine-hours) Machine setups (number of setups) General factory (organization-sustaining) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost $ 20,250 $247,500 $158,700 Hubs Activity Sprockets Total 125 100 225 4,500 4,500 NA NA NA 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. Check my work Required 1 Required 2 Determine the unit product cost of each product according to your answers to 2 decimal places.) Direct materials Direct labor Overhead Unit cost Hubs Sprockets Required 1 15 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per 142 points ellook Hubs Sprockets Unit 0.70 0.30 Annual Production 21,000 units 40,000 units Additional information about the company follows: a. Hubs require $25 in direct materials per unit, and Sprockets require $14 b. The direct labor wage rate is $17 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 Cost Pool (Activity Measure) Special processing (machine-hours) Machine setups (number of setups) General factory (organization-sustaining) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost $ 20,250 $247,500 $158,700 Hubs Activity Sprockets Total 125 100 225 4,500 4,500 NA NA NA 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. Check my work Required 1 Required 2 Determine the unit product cost of each product according to your answers to 2 decimal places.) Direct materials Direct labor Overhead Unit cost Hubs Sprockets Required 1
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