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could use some help please Foam Products, incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four
could use some help please
Foam Products, incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 15 per direct labor-hour Batch processing Number of batches $ 94 per batch Order processing Number of orders $ 275 per order Customer service Number of customers $ 2,611 per customer The company just completed a single order from Interstate Trucking for 2,000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $142 20 per unit, the direct materials cost was $107 per unit, and the direct labor cost was $14.30 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis Costs Direct materials Direct labor Supporting direct labor Batch processing Order processing Customer service overhead 0 Customer margin $ 0 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor - Hours per Unit Annual Production Hubs 0.60 14,880 units Sprockets e.20 42,800 units Additional information about the company follows: a. Hubs require $22 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $15 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: Cost Estimated Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) $ 14,850 Special processing (machine-hours) $ 141,800 General factory (organization-sustaining) $ 84,000 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. Hubs 75 4,700 NA Activity Sprockets 6e e NA Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculat your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead 9.00 3.00 Unit cost s 9.00 $ 300 Step by Step Solution
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