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Thank you and will up vote!!! Direct Labor- Hours per Annual Production 0.50 25,000 units 0.10 58,000 units Unit Hubs Sprockets Additional information about the
Thank you and will up vote!!!
Direct Labor- Hours per Annual Production 0.50 25,000 units 0.10 58,000 units Unit Hubs Sprockets Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $19 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 Activity Cost Pool Activity Measure) Machine setups (number of setups) Special processing machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 17,100 $123,000 $ 93,700 Hubs 95 4,100 NA Sprockets Total 76 171 4,100 NA 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 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Activity Rate per setup per MH Special processing 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 costStep by Step Solution
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