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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Production 0.50 13,000 units 0.10 56,000
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Production 0.50 13,000 units 0.10 56,000 units Annual Hubs Sprockets Additional information about the company follows a. Hubs require $22 in direct materials per unit, and Sprockets require $15 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 Activit Estimated Overhead Cost $ 14,400 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) 80 $140,000 3,500 NA Hubs Sprockets Total 144 0 3,500 NA 64 $ 51,300 NA
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