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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.80 19,000 units 0.40

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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.80 19,000 units 0.40 45,000 units Hubs Sprockets aces Additional information about the company follows: a. Hubs require $39 in direct materials per unit, and Sprockets require $17. b. The direct labor wage rate is $19 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 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 33,750 $114,000 $195, 200 H ubs 150 3,800 Sprockets Total 120 270 3,800 NA NA NA Prev 1 of 1 !!! Next > Additional information about the company follows: a. Hubs require $39 in direct materials per unit, and Sprockets require $17. b. The direct labor wage rate is $19 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 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 33,750 $114,000 $195,200 120 Hubs 150 3,800 NA Sprockets Total 270 @ 3,800 NA NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Prev 1 of 1 * Next >

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