Fogerty Company Makes Two Products Titanium Hubs And Sprockets Data Regarding The Two Products Follow Direct Labor Ho 1 (55.11 KiB) Viewed 52 times
Fogerty Company Makes Two Products Titanium Hubs And Sprockets Data Regarding The Two Products Follow Direct Labor Ho 2 (11 KiB) Viewed 52 times
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Hubs Sprockets Unit Production 0.60 26,000 units 0.20 45,000 units Additional information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $17 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 Activity Cost Pool (Activity Measure) Hubs Sprockets Total Machine setups (number of setups) $ 18,720 80 64 144 Special processing (machine-hours) $122,500 4,900 0 4,900 ΝΑ General factory (organization-sustaining) $150,600 ΝΑ ΝΑ 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.
Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH
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
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