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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor-Hours Annual Hubs Sprockets per Unit Productiorn 0.50 27,000 units
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Direct Labor-Hours Annual Hubs Sprockets per Unit Productiorn 0.50 27,000 units 0.10 50,000 units pok Additional information about the company follows: nt nces a. Hubs require $37 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $18 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: Estimated Overhead ActivityY Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Cost s 22,770 110 $176,000 4,400 NA Hubs Sprockets Total 88 198 o 4,400 63,500 NA NA
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