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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours: Hubs Sprockets. per Unit 0.50 0.10 Annual Production 23,000
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours: Hubs Sprockets. per Unit 0.50 0.10 Annual Production 23,000 units 44,000 units Additional information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $12 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 Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost $ 22,680 Hubs 105 Activity Sprockets 84 Total 189 4,900 0 $ 95,100 NA NA 4,900 NA $ 171,500 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. Required Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing Activity Rate per setup per MH
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