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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 0.70 0.30 Annual Production
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.70 0.30 Annual Production 28,000 units 56,000 units Additional information about the company follows: a. Hubs require $34 in direct materials per unit, and Sprockets require $18. 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: Hubs 120 Activity Sprockets 96 Total 3,600 0 NA NA 216 3,600 NA Activity Cost Pool (Activity Measure) Special processing (machine-hours) Machine setups (number of setups) General factory (organization-sustaining) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost $ 22,680 $ 162,000 $ 271,600 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
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