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5 Exercise 7-13 Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow 20 points
5 Exercise 7-13 Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow 20 points Direct Labor- Hours per Annual Unit Production 0.70 12,000 units 0.30 54,000 units 02:54:34 Hubs Sprockets Additional information about the company follows a. Hubs require $21 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $11 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: Estimated Overhead Activit Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Hubs Sprockets Total 225 0 4,400 NA Cost 125 $110,000 4,400 NA 24,750 100 $316,200 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 proc Activity Rate per setu essing per MH Required 1Required 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
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