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Fogerty Company makes two products titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor - Hours per Unit Annual Production Hubs 0
Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Direct LaborHours per Unit Annual Production Hubs units Sprockets units Additional information about the company follows: Hubs require $ in direct materials per unit, and Sprockets require $ The direct labor wage rate is $ per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure Overhead Cost Hubs Sprockets Total Machine setups number of setups $ Special processing machinehours $ General factory organizationsustaining $ NA 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.
Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:
Direct
LaborHours per Unit Annual
Production
Hubs units
Sprockets units
Additional information about the company follows:
Hubs require $ in direct materials per unit, and Sprockets require $
The direct labor wage rate is $ per hour.
Hubs require special equipment and are more complex to manufacture than Sprockets.
The ABC system has the following activity cost pools:
Estimated Activity
Activity Cost Pool Activity Measure Overhead Cost Hubs Sprockets Total
Machine setups number of setups $
Special processing machinehours $
General factory organizationsustaining $ NA 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.
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