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Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow: Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the
Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Production 0.60 25,000 units 0.20 60,000 units Annual Hubs Sprockets Additional information about the company follows a. Hubs require $27 in direct materials per unit, and Sprockets require $18 b. The direct labor wage rate is $19 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: Activit Estimated Overhead Activity Cost Pool (Activity Measure) Cost 23,760 120 $258, 000 ,300 $123, 000 Hubs Sprockets Total 216 Machine Special processing (machine-hours) General factory (organization-sustaining) setups (number of setups) 96 0 4,300 NA. NA. NA. Requirec 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 1Required 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.) Direct materials Direct labor Unit cost Required 1 Required 2Step by Step Solution
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