Complete exercise 7-13

Activity a Unit Product Batch Unit Customer production lines..... Aquired complete the table by providing an example of an activity measure for each activity. Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Direct labor workers assemble a product .. b. Products are designed by engineers c Equipment is set up d. Machines are used to shape and cut materials e Monthly bills are sent out to regular customers. 1. Materials are moved from the receiving dock to 9. All completed units are inspected for defects EXERCISE 7-13 Computing ABC Product Costs L07-3, LO7-4 Machine setups (number of setups) General factory (organization-sustaining). 1. Compute the activity rate for each activity cost pool. Did you compute an activity rate for all 2. Determine the unit product cost of each product according to the ABC system. EXERCISE 7-14 Calculating and Interpreting Activity-Based Costing Data LO7-3, LO7-4 Wuxam's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the Testaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified Tree major activities and then completed the first stage allocations of costs to the activity cost als. The results appear below. Examples of Activity Measures Batch Unit Direct Labor-Hours Annual Production Hubs 0.80 10,000 units Sprockets 0.40 40,000 units Additional information about the company follows: 2. Hubs require $32 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $15 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. . The ABC system has the following activity cost pools: Estimated Activity Overhead Hubs Activity Cost Pool (Activity Measure) Total Cost Sprockets $72,000 100 300 400 Special processing (machine-hours) $200,000 5.000 0 5,000 $816,000 NA NA NA of the activity cost pools? Why? per Unit Required: Activity Cost Pool Total Cost Total Activity Activity Measure