Question
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Hubs Sprockets Direct Labor Hours per Unit 0.98 0.50 Annual
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow Hubs Sprockets Direct Labor Hours per Unit 0.98 0.50 Annual Production 19,000 units 58,000 units Additional information about the company follows: a. Hubs require $24 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $17 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) Special processing (machine-hours) Estimated Overhead Cost $ 31,120 $76,000 $539,300 Mechine setups (number of setups) 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. Hub Activity Spreckats Total 145 3,800 HA NA 261 3,000 NA Check my work
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