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Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.90 28,000 units Sprockets

Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:

Direct

Labor-Hours per Unit Annual

Production Hubs 0.90 28,000 units Sprockets 0.50 54,000 units

Additional information about the company follows:

  1. Hubs require $32 in direct materials per unit, and Sprockets require $19.
  2. The direct labor wage rate is $17 per hour.
  3. Hubs require special equipment and are more complex to manufacture than Sprockets.
  4. The ABC system has the following activity cost pools:

Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 20,520 120 96 216 Special processing (machine-hours) $ 110,000 4,400 0 4,400 General factory (organization-sustaining) $ 322,200 NA NA NA

Required:

1. Compute the activity rate for each activity cost pool.

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.)

Hubs Sprockets

Direct materials __________ ________

.Direct labor __________ ________

Overhead __________ ________

Unit cost$ __________ ________

0.00$

0.00

2. Determine the unit product cost of each product according to the ABC system.

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