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Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Required 1 Required 2 Compute the activity rate for each activity
Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:
Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MHDirect Labor- Hours per Annual Unit Production Hubs 0.90 21,000 units Sprockets 0.50 55,000 unitsRequired 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not rou your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead Unit cost S 0.00 0.00Estimated Activity Overhead Activity Cost Pool (Activity Measure) Cost Hubs Sprockets Total Machine setups (number of setups) $ 20,790 110 88 198 Special processing (machine-hours) $114, 000 3,800 0 3, 800 General factory (organization-sustaining) $458, 900 NA NA NAStep by Step Solution
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