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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs Sprockets 0.70 0.30 Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $14 per hour. Annual Production 22,000 units 55,000 units 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) Required 1 Required 2 Estimated Overhead Complete this question by entering your answers in the tabs below. Cost $ 17,595 $ 220,500 $ 130,900 Special processing (machine-hours) 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. Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Hubs 85 4,900 ΝΑ Activity Sprockets 68 0 ΝΑ Total 153 4,900 ΝΑ

Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs Sprockets 0.70 0.30 Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $14 per hour. Annual Production 22,000 units 55,000 units 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) Required 1 Required 2 Estimated Overhead Complete this question by entering your answers in the tabs below. Cost $ 17,595 $ 220,500 $ 130,900 Special processing (machine-hours) 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. Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Hubs 85 4,900 ΝΑ Activity Sprockets 68 0 ΝΑ Total 153 4,900 ΝΑ

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Direct materials Direct labor Overhead Unit cost Hubs Sprockets < Required 1 Required 2 >
Transcribed Image Text:Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Direct materials Direct labor Overhead Unit cost Hubs Sprockets < Required 1 Required 2 >
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs Sprockets 0.70 0.30 Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $14 per hour. Annual Production 22,000 units 55,000 units 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) Required 1 Required 2 Activity Cost Pool Machine setups Special processing Complete this question by entering your answers in the tabs below. Compute the activity rate for each activity cost pool. Activity Rate per setup per MH Estimated Overhead Special processing (machine-hours) 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. Cost $ 17,595 $ 220,500 $ 130,900 < Required 1 Hubs 85 4,900 ΝΑ Required 2 > Activity Sprockets 68 0 ΝΑ Total 153 4,900 ΝΑ
Transcribed Image Text:Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Hubs Sprockets 0.70 0.30 Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $18. b. The direct labor wage rate is $14 per hour. Annual Production 22,000 units 55,000 units 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) Required 1 Required 2 Activity Cost Pool Machine setups Special processing Complete this question by entering your answers in the tabs below. Compute the activity rate for each activity cost pool. Activity Rate per setup per MH Estimated Overhead Special processing (machine-hours) 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. Cost $ 17,595 $ 220,500 $ 130,900 < Required 1 Hubs 85 4,900 ΝΑ Required 2 > Activity Sprockets 68 0 ΝΑ Total 153 4,900 ΝΑ
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