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undefined Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.90 29,000 units
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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.90 29,000 units 0.50 56,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $23 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $10 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 Estimated Overhead Cost $ 14,850 $ 92,500 $502,100 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Hubs 75 Sprockets Total 60 135 0 3,700 NA NA 3,700 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 Activity Rate per setup Machine setups Special processing per MH Hubs Sprockets Direct materials Direct labor Overhead Unit costStep by Step Solution
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