Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fogerty Company makes two products-titanium Hubs and Sprockets Data regarding the two products follow. Direct Labor-Hours pec Unit 0.68 0.20 Muos Sprockets Annual Production 19,000

image text in transcribed
image text in transcribed
image text in transcribed
Fogerty Company makes two products-titanium Hubs and Sprockets Data regarding the two products follow. Direct Labor-Hours pec Unit 0.68 0.20 Muos Sprockets Annual Production 19,000 units 43,000 units Additional information about the company follows a Hubs require $40 in direct materials per unit and Sprockets require $19 b. The direct labor wage rate is $12 per hout c. Hubs require special equipment and are more complex to manufacture than Sprockets d. The ABC system has the following activity cost pools Estimated Overhead cost 521735 $ 202,500 5.88.000 Hub 11 1.500 Activity Sprockets 2 Total 307 300 Activity Cost Pool (activity Measure) Machine stupa number of setups Special processing (sachine hours) al factory organization sustaining Required: 1. Comoute the activity rate for each activity cost pool NE 115 Sprockets 92 0 NA Total 207 4,500 NA MA Activity Cost Pool (activity Measure) Cost Hub Hachine setups (number of setups) $ 21,735 Special processing (machine-hours) $ 202,500 4,500 General factory (organization-sustaining) $ 88,800 Required: 1 Compute the activity rate for each activity cost pool 2 Determine the unt 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 Activity Cost Pool Machines Sordolocessing Activity Rate pet Setup Der H Required 2 > 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 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 Duct labor Overhead lunh cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

10th Canadian Edition Volume 2

1118300858, 978-1118300855

Students also viewed these Accounting questions