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Homework #4 i 4 10 points eBook Saved Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets
Homework #4 i 4 10 points eBook Saved Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor- Hours per Unit Annual Production 0.80 10,000 units 0.40 40,000 units References Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $15 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) Required: 1. Compute the activity rate for each activity cost pool. Estimated Overhead Cost $ 72,000 $200,000 $816,000 Activity 5,000 Hubs Sprockets Total 100 400 0 5,000 300 NA NA 2. Determine the unit product cost of each product according to the ABC system. NA Help Save & Exit Submit Check my work
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