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Please help! Im very stuck with these problems Direct Labor- Hours per Unit 0.60 0.20 Hubs Sprockets Annual Production 16,000 units 58,000 units Additional information
Please help! Im very stuck with these problems
Direct Labor- Hours per Unit 0.60 0.20 Hubs Sprockets Annual Production 16,000 units 58,000 units Additional information about the company follows: a. Hubs require $24 in direct materials per unit, and Sprockets require $18. 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: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 22,680 $ 129,500 $ 296,800 Expected Activity Hubs Sprockets Total 140 112 252 3,700 3,700 9,600 11,600 21,200 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 Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH Direct Labor- Hours per Unit 0.60 0.20 Hubs Sprockets Annual Production 16,000 units 58,000 units Additional information about the company follows: a. Hubs require $24 in direct materials per unit, and Sprockets require $18. 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: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 22,680 $ 129,500 $ 296,800 Expected Activity Hubs Sprockets Total 140 112 252 3,700 0 3,700 9,600 11,600 21,200 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 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 costStep by Step Solution
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