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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 0.60 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 | 0.60 | 28,000 | units |
| Sprockets | 0.20 | 59,000 | units |
Additional information about the company follows:
- Hubs require $23 in direct materials per unit, and Sprockets require $17.
- The direct labor wage rate is $20 per hour.
- Hubs require special equipment and are more complex to manufacture than Sprockets.
- The ABC system has the following activity cost pools:
| Activity Cost Pool (Activity Measure) | Estimated Overhead Cost | Activity | ||
|---|---|---|---|---|
| Hubs | Sprockets | Total | ||
| Machine setups (number of setups) | $ 24,750 | 110 | 88 | 198 |
| Special processing (machine-hours) | $ 269,500 | 4,900 | 0 | 4,900 |
| General factory (organization-sustaining) | $ 170,200 | NA | NA | NA |
Required:
- Compute the activity rate for each activity cost pool.
- Determine the unit product cost of each product according to the ABC system.
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EBay Sales Tracker Quick And Easy Bookkeeping System
Authors: Queen Thrift
1st Edition
B08KJ5FJND, 979-8692592774
