Exam Review Assignment

i

Fogerty Company makes two products$-$titanium Hubs and Sprockets. Data regarding the two products follow.

$\backslash$table$[[,\backslash$table$[[$Dircet$],[$Labor$],[$Gour$],[$por$],[$Unit$]],\backslash$table$[[$Annual$],[$Produotion$]]],[$Rubs$,0\mathrm{.}80,26,000$ units$],[$Spzockets$,0\mathrm{.}40,54,000$ units$]]$

Additional information about the company follows:

a$.$ Hubs require $$34$ in direct materials per unit, and Sprockets require $$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:

$\backslash$table$[[$Retivity Cost Pool $($Retivity Mosare$),\backslash$table$[[$Eot$$kated$],[$Overhoad$],[$cont$]],$Aotivity$],[$Hubs$,$Sprockota,Total$],[$Machine setupg $($number of sotups$),$$ $25\mathrm{.}740,120,88,198],[$Gpeolal procoseing $($machino$-$hours$),$$$125,000,5,000,0,5,000],[$Goneral Eactory $($organization$-$sustaining$),$$$301,600,$NA$,$NA$,]]$

Required:

Compute the activity rate for each activity cost pool.

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 $1$

Compute the activity rate for each activity cost pool.

$\backslash$table$[[$Actulity Cout Pool,Activily Pate$],[$Machine setups,$\backslash$table$[[$per$],[$selup$]],],[$Special processing,per M$.$H$,]]$