Business, 07.06.2020 03:57 gshreya2005

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.60 18,000 units Sprockets 0.20 55,000 units Additional information about the company follows: A. Hubs require $20 in direct materials per unit, and Sprockets require $18. B. The direct labor wage rate is $13 per hour. C. Hubs are more complex to manufacture than Sprockets and they require special equipment. D. The ABC system has the following activity cost pools. Activity cost pool (Activity measure) Overhead Cost Hubs Sprockets totMachine set up ( Number of set ups) $72000 100 300 400Special processing ( Machine hours) $200000 5000 0 5000General factory (Direct labor hours) $816000 8000 16000 24000Required: 1. Compute the activity rate(i. e predetermined overhead state) for each activity cost pool.
2. Determine the unit cost of each product according to the ABC system.

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

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