Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fogerty Company makes two products--Hubs and Sprockets. Data regarding the two products follow Direct Labor. Hours per Unit 0.80 0.48 Hubs Sprockets Annual Production 25,800

image text in transcribed
image text in transcribed
Fogerty Company makes two products--Hubs and Sprockets. Data regarding the two products follow Direct Labor. Hours per Unit 0.80 0.48 Hubs Sprockets Annual Production 25,800 units 50,000 units ht Additional information about the company follows: a. Hubs require $20 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $19 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) General factory (Direct labor-hours) Estimated Overhead Cost $ 17,550 $ 185,000 $320, eae Expected Activi Hubs Sprockets 75 68 4,600 20.000 20,000 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 activity rate for each activity cost pool Activity Cost Pool Machine setups Special proced Dental factory Activity Rate 5 130 per setup 5 40 per MH 5 Sper DH Required 2 > Fogerty Company makes two products---Hubs and Sprockets. Data regarding the two products follow Hubs Sprockets Direct Labor-Hours per Unit 0.80 0.42 Annual Production 25,000 units 5e,eee units 1 Additional information about the company follows a. Hubs require $20 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $19 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) General factory (Direct labor-hours) Estimated Overhead Cost $ 17,550 $ 180,000 $ 320,000 Expected Activi Hubs Sprockets 75 be 4.600 0 20,000 20, 980 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) (0 calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Dect labor Manufacturing overhoad Unit produd Cost 5 0.005 0.00 (Required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

12th edition

1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411

Students also viewed these Accounting questions

Question

Were the participants sensitized by taking a posttest?

Answered: 1 week ago