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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.70 0.30 Annual Production 20,000
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.70 0.30 Annual Production 20,000 units 51,000 units Additional information about the company follows: a. Hubs require $33 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: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 14,535 $ 172,000 $ 243,500 Hubs Complete this question by entering your answers in the tabs below. 85 4,300 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. Activity Sprockets 68 0 Total 153 4,300
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