- Fogerty Company Makes Two Products Titanium Hubs And Sprockets Data Regarding The Two Products Follow Direct Labor Hou 1 (47.21 KiB) Viewed 12 times
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs 0.70 Sprockets 0.30 Additional information about the company follows: a. Hubs require $34 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $18 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: Annual Production 18,000 units 51,000 units Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Direct materials Direct labor Overhead Unit cost Complete this question by entering your answers in the tabs below. Hubs Estimated Overhead 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. Sprockets $ 34.00 $ 19.00 12.60 Cost $ 13,770 $ 202,500 $ 89,100 $ 46.60 $ 19.00 Hubs 85 4,500 NA Activity Sprockets 68 0 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.) NA Total 153 4,500 ΝΑ