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O Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Hubs Sprockets Unit 0.50 8.10 Annual
O Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Hubs Sprockets Unit 0.50 8.10 Annual Production 11,000 units 58,000 units Additional information about the company follows: a. Hubs require $24 in direct materials per unit, and Sprockets require $14. b. The direct labor wage rate is $15 per hour. 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 $ 19,800 Hubs 100 $ 168,000 4,800 Activity Sprockets 28 e Totals $ 80,900 NA NA 188 4.ee NA 2. Determine the unit product cost of each product according to the ABC system Mc Graw Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing Activity Rate per setup per MH Required f Required 2 > eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate Round your answers to 2 decimal places.) Hubs Direct materials Direct labor Overhead Unit cost $ 0.00 Sprockets $ 0.00 < Required 1 Required 2 >
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