Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. fogerty company makes two products, titanium hubs

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:    Direct Labor-Hours per...

Free

70.2K

Verified Solution

Question

Accounting

Fogerty Company makes two products, titanium Hubs and Sprockets.Data regarding the two products follow:

  

Direct
Labor-Hours per Unit		Annual
Production
Hubs0.6018,000units
Sprockets0.2051,000units

Additional information about the company follows:

a. Hubs require $34 in direct materials per unit, and Sprocketsrequire $18.

b. The direct labor wage rate is $17 per hour.

c. Hubs are more complex to manufacture than Sprockets and theyrequire special equipment.

d. The ABC system has the following activity cost pools:

  

EstimatedActivity
Activity Cost Pool (Activity Measure)Overhead CostHubsSprocketsTotal
Machine setups (number of setups)$15,3008568153
Special processing (machine-hours)$184,5004,10004,100
General factory (organization-sustaining)$174,000NANANA

Required

2. Determine the unit product cost of each product according tothe ABC system. (Round intermediate calculations and finalanswers to 2 decimal places.)

For hubs and sprockets

Direct materials:

Direct Labor:

Overhead:

Answer & Explanation Solved by verified expert
4.0 Ratings (446 Votes)

Requirement 2, along with workings

Hubs Sprockets
Answer Working Answer Working
Direct materials $                34.00 [given] $            18.00 [given]
Direct labor $                10.20 0.60 DLHs x $ 17 $              3.40 0.20 DLHs x $ 17
Overhead $                10.72 [ (85 x 100) + (4100 x 45)]/18000 units $              0.13 [ (68 x 100) + (0 x 45)]/51000 units
Unit cost $                54.92 $            21.53

--ABC workings

Activity Cost Pool Overhead cost Total Activity Activity Rate
[A] [B] [C = A/B]
Machine setups $15,300 153 $100.000 per setup
Special processing $184,500 4100 $45.00 per MH
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Riley invests a sum of money into a retirement account with an annual interest rate...

Biology
1.2K views

This assignment is about the article “I’m not a racist but…” by Neil Bissoondath. The article...

Physics
1.2K views

Bohr theory of the atom: In the hydrogenic Bohr orbit of quantum number n compute the ratio...

Basic Math
1.2K views

Research is an integral part of all professional fields. Designing a research study can be a...

Physics
1.2K views

Question In bringing an electron towards another electron the electrostatic potential energy of the system...

Geometry
1.2K views

ach solid is composed of a rectangular prism and a regular pyramid Find the surface...

Geometry
1.2K views

If the similarity ratio of two similar figures is then the ratio of their perimeters...

Basic Math
1.2K views

Part 2 of 4 2 points Skipped eBook Print References Required information 2 a Compute...

Calculus
1.2K views

What is the average rate of change of f x from x 10 to x...

Accounting
1.2K views

Question 9 (2 points) Which of the following items shows three key aspects of an...

Accounting
1.2K views

! Required information (The following information applies to the questions displayed below.) The Platter Valley...

Accounting
1.2K views

Please answer all parts of #8-9, I will rate. i hope...