There is no material cost.
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Hubs Sprockets Annual Production 16,eee units 58,688 units 0.28 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 $ 22,689 $ 129, see $ 296,800 Expected Activity Hubs Sprockets Total 140 112 252 3,700 3,700 9,688 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 Cost Pool Activity Rate Machine setups per setup Special processing General factory per DLH per MH Exercise 2A-1 Activity-Based Absorption Costing [LO2-5] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit 0.60 2.2e Hubs Sprockets Annual Production 16,000 units 58,eee 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 3,789 3,700 9,688 11,600 21,280 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 cost s 0.00 $ 0.00
