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Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades

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Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing systern for internal decision-making purposes. The company has four activity cost pools as listed below: Activity cost. Pool Activity Measure Activity Rata Order size Number of direct labor-hours 16.40 per direct labor hour Customer orders Number of customer orders $ 350.00 per customer order Product testing Number of testing hours 76.00 per testing hour Selling Number of sales calls $1,483.00 per sales call $ $ The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axes. The order required 150 direct labor-hours, 18 hours of product testing, and 6 sales calls Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? ABC Cast Activity Cost Pool Onder size Customer orders Product Testing Selling Total overhead cost $ 0 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 2.60 18,000 units 0.20 45,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $22 in direct materials per unit, and Sprockets require $17. 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: Activity Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 16, 200 $214,500 $ 64,80 Hubs Sprockets Total 100 80 180 3,900 0 3, 900 NA NA NA Activity Activity Cost Pool Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cast $ 16, 200 $214,500 $ 64,800 Hubs Sprockets Total 100 180 3,900 @ 3,900 NA NA 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 Activity Rate Machine setups per setup Special processing per MH

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