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fogerty company makes two products. Please work out so i can understand 3). Computing ABC Product Costs Fogerty Company makes two products, titanium Hubs and

fogerty company makes two products. Please work out so i can understand
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3). Computing ABC Product Costs Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor- Hours per Unit Annual Production 0.80 10,000 units : 00 0.40 40.000 units - 1lop 00 Hubs Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $15 per hour c. Hubs are more complex to manufacture than Sprockets and they require special equipment d. The ABC system has the following activity cost pools: Activity Estimated Activity Cost Pool (Activity Measure) Mechine setups (number of setups).... General factory (organtzation-sustalning) Overhead Cost Hubs Sprockets Total $72,000 100 300 400 0 5,000 NA NA NA $816,000 Required 1. Compute the activity rate for each activity cost pool. Did you compute an activity rate for all of the activity cost pools? Why? 2. Determine the unit product cost of each product according to the ABC system. ya 30 04040 per set ehmoyd tole) muchine Sooo e00300 elle,

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