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Exercise 7 - 1 3 ( Algo ) Computing ABC Product Costs [ L 0 7 - 3 , L 0 7 - 4 ]
Exercise Algo Computing ABC Product Costs L L Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: tableDirect LaborHours,per Unit,Annual ProductionHubs unitsSprockets units Additional information about the company follows: a Hubs require $ in direct materials per unit, and Sprockets require $ b The direct labor wage rate is $ 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 Cost Pool Activity Measure Machine setups number of setups Special processing machinehours General factory organizationsustaining 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 Determine the unit product cost of each product according to the ABC system. Do not round intermediate calculations. Round your answers to decimal places.
Exercise Algo Computing ABC Product Costs L L
Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:
tableDirect LaborHours,per Unit,Annual ProductionHubs unitsSprockets units
Additional information about the company follows:
a Hubs require $ in direct materials per unit, and Sprockets require $
b The direct labor wage rate is $ 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 Cost Pool Activity Measure
Machine setups number of setups
Special processing machinehours
General factory organizationsustaining
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
Determine the unit product cost of each product according to the ABC system. Do not round intermediate calculations. Round your answers to decimal places.
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