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 per Annual Unit Production 0.60 25,000 units 0.20

image text in transcribed
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 per Annual Unit Production 0.60 25,000 units 0.20 45,000 units Hubs Sprockets Additional information about the company follows: a Hubs require $29 in direct materials per unit, and Sprockets require $13 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: about the company follows: . Hubs require $29 in direct materials per unit, and Sprockets require $13. 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 Activity Cost Pool (Activity Measure) Machine setups (number of setups). Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 16,560 $205,000 $ 87,000 Hubs Sprockets Total 80 64 144 4,100 @ 4,100 NA NA 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 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. Activity Cost Pool Machine setups Activity Rate $ setup 30 per MH 115 per $ Special processing Required 2 > Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round i your answers to 2 decimal places.) Direct materials Direct labor Overhead Unit cost Hubs Sprockets $ 40.00 $ 180.00 12.00 36.00 7.90 0.50 $ 59.90 $ 216.50 HA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Financial Accounting Theory

Authors: Craig Deegan

3rd Edition

0070277265, 978-0070277267

More Books

Students also viewed these Accounting questions

Question

What are the components of an ANOV table?

Answered: 1 week ago