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Needing help with calculating required #2 thank you! Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor Hours
Needing help with calculating required #2
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor Hours per Unit 0.60 0.20 Hubs Sprockets Annual Production 11,000 units 40,000 units Additional information about the company follows: a. Hubs require $39 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $13 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: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 24,795 $ 102,500 $ 189,800 Expected Activity Hubs Sprockets Total 145 116 261 4,100 4,100 6,60 3,000 14,600 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. Prax 1 of 3 !!! Next > O TI E Te to search thank you!
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