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PLS HELP! THANK YOU! Fogerty Company makes two productsHubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.80

PLS HELP! THANK YOU!

Fogerty Company makes two productsHubs and Sprockets. Data regarding the two products follow:

Direct Labor-Hours per Unit Annual Production
Hubs 0.80 10,000 units
Sprockets 0.40 40,000 units

Additional information about the company follows:

  1. Hubs require $32 in direct materials per unit, and Sprockets require $18.
  2. The direct labor wage rate is $15 per hour.
  3. Hubs are more complex to manufacture than Sprockets and they require special processing.
  4. The companys activity-based absorption costing system has the following activity cost pools:

Estimated Expected Activity
Activity Cost Pool (and Activity Measure) Overhead Cost Hubs Sprockets Total
Machine setups (number of setups) $ 72,000 100 300 400
Special processing (machine-hours) $ 200,000 5,000 0 5,000
General factory (Direct labor-hours) $ 816,000 8,000 16,000 24,000

1. Compute the activity rate for each activity cost pool.

Activity Cost Pool Activity Rate

Machine setups ____ per set up

Special Processing. ____per MH

General Factory. _____per DLH

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 points.)

Hubs Sprockets

Direct materials ______ ______

Direct labor ______ ______

Manufacturing overhead ______ ______

Unit product cost ______ ______

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