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Hubs Sprockets Direct Lapor-hours per Unit 0.70 0.30 Annual Production 12,000 units 42,000 units Additional information about the company follows: a. Hubs require $33 in
Hubs Sprockets Direct Lapor-hours per Unit 0.70 0.30 Annual Production 12,000 units 42,000 units Additional information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $12. b. The direct labor wage rate is $10 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) Estimated Overhead Cost $ 24,750 $ 100,000 $ 172,200 Hubs 125 4,000 NA Activity Sprockets 100 O NA Total 225 4,000 NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets $ 12.00 Direct materials $ 33.00 Direct labor 10.00 Overhead Unit cost $ 43.00 $ 12.00
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