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Category > Accounting Posted 11 Aug 2017 My Price 9.00

Fogerty Company

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:

 

  Direct
Labor-Hours
per Unit		 Annual
Production
Hubs 0.90 25,000 units
Sprockets 0.50 49,000 units
Additional information about the company follows:
a. Hubs require $26 in direct materials per unit, and Sprockets require $17.
b. The direct labor wage rate is $19 per hour.
c. Hubs are more complex to manufacture than Sprockets and they require special processing.
d. The ABC system has the following activity cost pools:
    Estimated
Overhead		 Activity
Activity Cost Pool Activity Measure Cost Hubs Sprockets Total
Machine setups Number of setups $ 17,100   95   76   171  
Special processing Machine-hours $ 132,000   4,400   0   4,400  
General factory Direct labor-hours $ 423,000   22,500   24,500   47,000  
Requirement 1:
Compute the activity rate for each activity cost pool. (Omit the "$" sign in your response.)

 

Activity Cost Pool Activity Rate
Machine setups $ per setup
Special processing $ per MH
General factory $ per DLH
Requirement 2:

Determine the unit cost of each product according to the ABC system, including direct materials and direct labor. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

  Hubs Sprockets
Direct materials $ $
Direct labor    
Overhead    
Unit cost

$

$

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 06:08 PM My Price 9.00

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