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Document2 - Word References Mailings Review View Help Search - A A A A E...

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Accounting

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Document2 - Word References Mailings Review View Help Search - A A A A E 21 , A.2.A. EEEE.. Alba Abbcod AaBbc AaBbcat AaB ABCD Abcd AaBbc 1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em... Empha Fogerty Company makes two products-utanlum Hubs and Sprockets. Data regarding the two products follow: Direct Labor. Hours Unit 0.60 2.20 Annual Production 25,000 units 57,eee units Sprockets Additional Information about the company follows: a. Hubs require 522 in direct materials per unit, and Sprockets require $15. 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 Hubs Sprockets Total Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing machine.hours) General factory (organization-sustaining) Estimated Overhead Cost $ 17,955 $ 90,000 $167,200 3,600 NA NA 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

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