Question
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production Hubs 0.80 24,000units
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production Hubs 0.80 24,000units Sprockets 0.40 48,000units Additional information about the company follows: a. Hubs require $38 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $19 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 Activity Cost Pool (Activity Measure) Overhead Cost Machine setups (number of setups) $ 23,760 120 Activity Hubs Sprockets Total 96 216 Special processing (machine- hours) General factory (organization- sustaining) $107,500 4,300 0 4,300 $345,600 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 Required 1 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Direct materials Hubs Sprockets Direct labor Overhead Unit cost < Required 1 Required 2 >
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