Fogerty Company makes two products-Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours Hubs per Unit 0.90 0.50 Annual Production 11,000 units 41,000 units Sprockets Additional information about the company follows: a. Hubs require $29 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $18 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Estimated Overhead Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Cost $ 23,940 $ 166,500 Hubs Expected Activity Sprockets Total 95. 76 171 3,700 0 $ 577,600 9,900 20,500 3,700 30,400 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Direct materials Hubs Sprockets 29.00 $ 16.00 a. Hubs require $29 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $18 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) Ceneral factory (Direct labor-hours) Estimated Overhead Cost $ 23,940 Hubs 95 Expected Activity Sprockets Total 76 171 $ 166,500 3,700) 0 3,700 $ 577,600 9,900 20,500 30,400 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Direct materials Direct labor Hubs Sprockets 29.00 $ 16.20 16.00 9.00 Manufacturing overhead Unit product cost $ 45.20 $ 25.00 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Rancon $ 11.00 $ 3.00 0.40 19,000 Parcel $ 8.00 $ 3.80 0.45 50,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $872,900. Using the company's traditional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Engineering design time (in hours) Rascon Parcel 4,100 4,100 Total 8,200 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The company's manufacturing overhead costs for the year are expected to be $872,900. Using the company's traditional costing system, compute the unit product costs for the two products. (Round your intermediate calculations and final answers to 2 decimal places.) Rascon Parcel Unit product cost Required 1 Required 2> Direct materials cost per unit $ 11.00 $ 3.00 Direct labor cost per unit Direct labor-hours per unit. Number of units produced $ 8.00 $ 3.80 0.40 19,000 0.45 50,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $872,900. Using the company's traditional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Engineering design time (in hours) Rascon 4,100 Parcel 4,100 Total 8,200 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Requid 2 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Rascon Unit product cost Parcel Required 1 Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 68.00 $ 26.00 0.70 DLHS 10,000 units Standard $ 56.00 $ 21.20 1.40 DLHS 50,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours Required: $ 586,000 77,000 DLHS 1. Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based absorption costing system that would have the following three activity cost pools: Activity Cost Pools (and Activity Measures). Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead. Expected Activity Cost $ 385,000 132,000 69,000 Deluxe Standard Total 7,000 70,000 77,000 200 100 300 30 70 100 $586,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost Deluxe Standard Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 68.00 $ 26.00 0.70 DLHS 10,000 units Standard $56.00 $ 21.20 1.40 DLHS 50,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below. Estimated total manufacturing overhead Estimated total direct labor-hours Required: $ 586,000 77,000 DLH 1. Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based absorption costing system that would have the following three activity cost pools: Activity Cost Pools (and Activity Measures) Estimated Overhead Expected Activity Deluxe 7,000 Standard Total 70,000 200 100 77,000 300 30 70 100 Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Cost $ 385,000 132,000 69,000 $ 586,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost Deluxe Standard