Fogerty Company makes two products--titanium Hubs and Sprockets. Data regarding the two products follow: Direct...
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Fogerty Company makes two products--titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 8.88 12,eee units 8.40 56,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $11. b. The direct labor wage rate is $20 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 $ 20,160 $140,000 $323,200 Hubs 80 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Sprockets Total 64 144 4, eee NA NA 4, 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, 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 32.00 s 11.00 16.00 8.00 Direct materials Direct labor Overhead Unit cost $ 48.00 $ 19.00
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