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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.80 0.40 Annual Production
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.80 0.40 Annual Production 12,000 units 57,000 units Additional information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $17. b. The direct labor wage rate is $13 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 Activity Cost Pool (Activity Measure) Cost $ 28,980 Hubs Activity Sprockets Total 115 92 207 $ 115,000 4,600 0 $ 374,400 NA NA 4,600 NA Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) 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. Required 1 Required 2 Commute the activity rate for ach arthity net naal
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