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Hours per Unit 0.50 0.10 Hubs Sprockets Annual Production 20,000 units 42,000 units Additional information about the company follows: a. Hubs require $30 in direct
Hours per Unit 0.50 0.10 Hubs Sprockets Annual Production 20,000 units 42,000 units Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $10. b. The direct labor wage rate is $14 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Expected Activity Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost 18,000 $ 94,000 $ 241,400 Hubs 100 4,700 10,000 Sprockets 80 0 4,200 Total 180 4,700 14,200 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup per MH Special processing General factory per DLH Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product cost for Hubs and Sprockets using activity-based absorption costing. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Manufacturing overhead Unit product cost
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