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please help with req 2 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production
please help with req 2
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production 0.90 20,000 units Sprockets 0.50 58,000 units Additional information about the company follows: Hubs a. Hubs require $32 in direct materials per unit, and Sprockets require $12. b. The direct labor wage rate is $18 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 Sprockets 112 Total 252 3,600 NA NA Estimated Overhead Activity Cost Pool (Activity Measure) Cost Hubs Machine setups (number of setups) $ 26,460 140 Special processing (machine-hours) $ 108,000 3,600 General factory (organization-sustaining) $ 221,000 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 Direct materials Direct labor Overhead Unit cost $ 0.00 $ 0.00 Step by Step Solution
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