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gerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit lubs Sprockets 0.60 0.20 Annual Production 29,000 units 59,000 units ditional information about the company follows: Hubs require $39 in direct materials per unit, and Sprockets require $19. The direct labor wage rate is $17 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) quired: Compute the activity rate for each activity cost pool. Determine the unit product cost of each product according to the ABC system. Cost $ 22,500 $ 156,000 $ 111,800 Hubs 100 3,900 ΝΑ Activity Sprockets 80 0 ΝΑ Total 180 3,900 ΝΑ

gerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit lubs Sprockets 0.60 0.20 Annual Production 29,000 units 59,000 units ditional information about the company follows: Hubs require $39 in direct materials per unit, and Sprockets require $19. The direct labor wage rate is $17 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) quired: Compute the activity rate for each activity cost pool. Determine the unit product cost of each product according to the ABC system. Cost $ 22,500 $ 156,000 $ 111,800 Hubs 100 3,900 ΝΑ Activity Sprockets 80 0 ΝΑ Total 180 3,900 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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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
Transcribed Image Text: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
gerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit lubs Sprockets 0.60 0.20 Annual Production 29,000 units 59,000 units ditional information about the company follows: Hubs require $39 in direct materials per unit, and Sprockets require $19. The direct labor wage rate is $17 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) quired: Compute the activity rate for each activity cost pool. Determine the unit product cost of each product according to the ABC system. Cost $ 22,500 $ 156,000 $ 111,800 Hubs 100 3,900 ΝΑ Activity Sprockets 80 0 ΝΑ Total 180 3,900 ΝΑ
Transcribed Image Text:gerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit lubs Sprockets 0.60 0.20 Annual Production 29,000 units 59,000 units ditional information about the company follows: Hubs require $39 in direct materials per unit, and Sprockets require $19. The direct labor wage rate is $17 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) quired: Compute the activity rate for each activity cost pool. Determine the unit product cost of each product according to the ABC system. Cost $ 22,500 $ 156,000 $ 111,800 Hubs 100 3,900 ΝΑ Activity Sprockets 80 0 ΝΑ Total 180 3,900 ΝΑ
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