Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours Hubs Sprockets per Unit 0.50 0.10 Annual Production 28,000 units 60,000 units Additional information about the company follows: a. Hubs require $23 in direct materials per unit, and Sprockets require $12. b. The direct labor wage rate is $14 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: Estimated Overhead Activity Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) Cost $ 25,200 Hubs Sprockets Total 140 112 252 $ 171,500 4,900 0 $ 122,000 NA NA 4,900 NA General factory (organization-sustaining) 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. Complete this question by entering your answers in the tabs below. 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 Direct materials Direct labor Overhead Unit cost $ 0.00 $ 0.00
Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours Hubs Sprockets per Unit 0.50 0.10 Annual Production 28,000 units 60,000 units Additional information about the company follows: a. Hubs require $23 in direct materials per unit, and Sprockets require $12. b. The direct labor wage rate is $14 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: Estimated Overhead Activity Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) Cost $ 25,200 Hubs Sprockets Total 140 112 252 $ 171,500 4,900 0 $ 122,000 NA NA 4,900 NA General factory (organization-sustaining) 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. Complete this question by entering your answers in the tabs below. 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 Direct materials Direct labor Overhead Unit cost $ 0.00 $ 0.00
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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![Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4]
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow:
Direct Labor-Hours
Hubs
Sprockets
per Unit
0.50
0.10
Annual Production
28,000 units
60,000 units
Additional information about the company follows:
a. Hubs require $23 in direct materials per unit, and Sprockets require $12.
b. The direct labor wage rate is $14 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:
Estimated Overhead
Activity
Activity Cost Pool (Activity Measure)
Machine setups (number of setups)
Special processing (machine-hours)
Cost
$ 25,200
Hubs
Sprockets
Total
140
112
252
$ 171,500
4,900
0
$ 122,000
NA
NA
4,900
NA
General factory (organization-sustaining)
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.
Complete this question by entering your answers in the tabs below.
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.)
Direct materials
Direct labor
Overhead
Unit cost
$
GA
Hubs
MAINA
Sprockets
0.00 $
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00e62c2d-8aaa-40ea-83b0-eb0019187de3%2Fcbffa2a4-9a52-41a0-8dd9-963d4a205a84%2Fgued9ps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4]
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow:
Direct Labor-Hours
Hubs
Sprockets
per Unit
0.50
0.10
Annual Production
28,000 units
60,000 units
Additional information about the company follows:
a. Hubs require $23 in direct materials per unit, and Sprockets require $12.
b. The direct labor wage rate is $14 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:
Estimated Overhead
Activity
Activity Cost Pool (Activity Measure)
Machine setups (number of setups)
Special processing (machine-hours)
Cost
$ 25,200
Hubs
Sprockets
Total
140
112
252
$ 171,500
4,900
0
$ 122,000
NA
NA
4,900
NA
General factory (organization-sustaining)
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.
Complete this question by entering your answers in the tabs below.
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.)
Direct materials
Direct labor
Overhead
Unit cost
$
GA
Hubs
MAINA
Sprockets
0.00 $
0.00
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