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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 29,000 units 57,000 units Additional information about the company follows: a. Hubs require $20 in direct materials per unit, and Sprockets require $17. b. The direct labor wage rate is $11 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 Activity Sprockets Total 115 92 4,900 0 207 4,900 NA NA 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. Estinated Overhead Cost $ 27,945 $ 147,000 $ 160,000 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.
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