Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.60 0.20 Annual Production 12,000 units 56,000 units Hubs Sprockets Additional Information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $12 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 Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 23,490 $ 160,000 $164,000 Hubs 145 4,000 NA Activity Sprockets 116 NA Total 261 4,000 NA

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow:
Direct Labor-Hours per
Unit
0.60
0.20
Annual Production
12,000 units
56,000 units
Hubs
Sprockets
Additional Information about the company follows:
a. Hubs require $30 in direct materials per unit, and Sprockets require $18.
b. The direct labor wage rate is $12 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 Cost Pool (Activity Measure)
Machine setups (number of setups)
Special processing (machine-hours)
General factory (organization-sustaining)
Estimated Overhead
Cost
$ 23,490
$ 160,000
$164,000
Hubs
145
4,000
NA
Activity
Sprockets
116
NA
Total
261
4,000
NA
Transcribed Image Text:Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.60 0.20 Annual Production 12,000 units 56,000 units Hubs Sprockets Additional Information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $12 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 Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated Overhead Cost $ 23,490 $ 160,000 $164,000 Hubs 145 4,000 NA Activity Sprockets 116 NA Total 261 4,000 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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the activity rate for each activity cost pool.
Activity Cost Pool
Machine setups
Special processing
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
Complete this question by entering your answers in the tabs below.
Direct materials
Direct labor
Overhead
Unit cost
$
Activity Rate
per setup
per MH
Hubs
Sprockets
< Required 1
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.)
0.00 $
0.00
< Required 1
Required 2 >
Required 2 >
300-900
///
Transcribed Image Text: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 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing 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 Complete this question by entering your answers in the tabs below. Direct materials Direct labor Overhead Unit cost $ Activity Rate per setup per MH Hubs Sprockets < Required 1 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.) 0.00 $ 0.00 < Required 1 Required 2 > Required 2 > 300-900 ///
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