Question
Hello! I am struggling in accounting computations, Your guidance in this is much appreciated! Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the
Hello! I am struggling in accounting computations, Your guidance in this is much appreciated!
Fogerty Company makes two productstitanium Hubs and Sprockets. Data regarding the two products follow:
Production
Hubs- Direct Labor Hours per unit- 0.50 Annual Production-12,000units
Sprockets - Direct Labor Hours per unit- 0.10 Annual Production-59,000units
Additional information about the company follows:
- Hubs require $37in direct materials per unit, and Sprockets require $11.
- The direct labor wage rate is $15per 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 Estimated Overhead Cost Activity- Hubs Sprockets Total
Machine Set Ups $23,490 145 116 261
Machine Hours $138,000 4,600 0 4,600
General Factory $112,200 NA NA NA
1.) I need to compute the activity rate for each activity cost pool:
Machine Set Ups: ??? (per set up)
Special Processing: ??? (per Machine Hour)
2.) Determine the unit product cost of each product according to the ABC system (each for hubs and for sprockets).
Direct Materials
Direct Labor
Overhead
Please and thank you!!!!!!
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