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ces Fogerty Company makes two products-Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.60 0.20 Annual Production
ces Fogerty Company makes two products-Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.60 0.20 Annual Production 29,000 units 46,000 units Additional information about the company follows: a. Hubs require $34 in direct materials per unit, and Sprockets require $20. b. The direct labor wage rate is $10 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measure) Machine setups (number of setups). Special processing (machine-hours) General factory (Direct labor-hours) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead, Cost $ 34,020 Hubsi 135 4,400 Expected Activity Sprockets: 108 Total 243 0 4,400 $ 372,400 17,400 9,200 26,600 $ 198,000 2. 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 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH
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