- Exercise 5 13 Computing Abc Product Costs L05 3 L05 4 Fogerty Company Makes Two Products Titanium Hubs And Sprockets D 1 (63.67 KiB) Viewed 18 times
EXERCISE 5-13 Computing ABC Product Costs L05-3, L05-4 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Annual Production 0.80 10,000 units Hubs Sprockets.. 0.40 40,000 units Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $15 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 Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Machine setups (number of setups)... $72,000 100 300 400 Special processing (machine-hours). $200,000 5,000 0 5,000 General factory (organization-sustaining).. $816,000 ΝΑ ΝΑ NA Required: 1. Compute the activity rate for each activity cost pool. Did you compute an activity rate for all of the activity cost pools? Why? the ADC Total