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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor Hours per Hubs Sprockets Unit 0.70 0.30 Annual Production
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor Hours per Hubs Sprockets Unit 0.70 0.30 Annual Production 16,000 units 44,000 units Additional information about the company follows: a. Hubs require $28 in direct materials per unit, and Sprockets require $10. 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) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead) Cost $19,890 $ 236,500 Hubs Activity Sprockets Total 85 68 153 4,300 e $ 169,600 NA NA 4,300 NA 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 Compute the activity rate for each activity cost pool
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