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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:

  1. Hubs require $37in direct materials per unit, and Sprockets require $11.
  2. The direct labor wage rate is $15per hour.
  3. Hubs require special equipment and are more complex to manufacture than Sprockets.
  4. 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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