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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit 0.70 14,000 units 0.30 46,000 units Hubs Sprockets Annual Production Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $11

Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit 0.70 14,000 units 0.30 46,000 units Hubs Sprockets Annual Production Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $11

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 Compute the activity rate for each activity cost pool. Activity Rate Activity Cost Pool Machine setups Special processing 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 Hubs per setup per MH Sprockets < Required 1 Required 2
Transcribed Image Text:Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Rate Activity Cost Pool Machine setups Special processing 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 Hubs per setup per MH Sprockets < Required 1 Required 2
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.70 14,000 units 0.30 46,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $11. 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: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated: Overhead Cost $ 25,875 $228,000 $272,000 Activity Hubs Sprockets Total 115 207 3,800 3,800 NA 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. 92 0 NA
Transcribed Image Text:Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.70 14,000 units 0.30 46,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets require $11. 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: Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Estimated: Overhead Cost $ 25,875 $228,000 $272,000 Activity Hubs Sprockets Total 115 207 3,800 3,800 NA 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. 92 0 NA
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