Exercise 5-13 (Algo) Computing ABC Product Costs [LO5-3, LO5-4]

Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:

Exercise 5-13 (Algo) Computing ABC Product Costs (LO5-3, LO5-4) Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production Hubs 0.70 15,000units Sprockets 0.30 58,000units Additional information about the company follows: a. Hubs require $39 in direct materials per unit, and Sprockets require $17. 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: Activity Estimated Overhead Cost Hubs Sprockets Total 90 72 162 $ 17,820 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine- hours) General factory (organization- sustaining) $123,000 4,100 0 4,100 $306,300 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 Required 1 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine per setups setup Special per processing MH Required 1 Required 2 > Required Required 1 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead Unit cost