Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: DirectLabor-Hours per Unit AnnualProduction Hubs 0.70 11,000 units Sprockets 0.30 45,000 units Additional information about the company follows: Hubs require $25 in direct materials per unit, and Sprockets require $19. The direct labor wage rate is $15 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 16,200 100 80 180 Special processing (machine-hours) $ 188,000 4,700 0 4,700 General factory (organization-sustaining) $ 196,700 NA NA NA Determine the unit product cost of each product according to the ABC system. HUBS SPROCKETS Direct Materials ?? ?? Direct Labor ?? ?? Overhead ?? ??
Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow:
| Direct Labor-Hours per Unit |
Annual Production |
||
| Hubs | 0.70 | 11,000 | units |
| Sprockets | 0.30 | 45,000 | units |
Additional information about the company follows:
-
Hubs require $25 in direct materials per unit, and Sprockets require $19.
-
The direct labor wage rate is $15 per hour.
-
Hubs require special equipment and are more complex to manufacture than Sprockets.
-
The ABC system has the following activity cost pools:
| Estimated | Activity | ||||
| Activity Cost Pool (Activity Measure) | Hubs | Sprockets | Total | ||
| Machine setups (number of setups) | $ | 16,200 | 100 | 80 | 180 |
| Special processing (machine-hours) | $ | 188,000 | 4,700 | 0 | 4,700 |
| General factory (organization-sustaining) | $ | 196,700 | NA | NA | NA |
Determine the unit product cost of each product according to the ABC system.
HUBS SPROCKETS
Direct Materials ?? ??
Direct Labor ?? ??
Overhead ?? ??
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