Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.60 0.20 Hubs Sprockets Additional information about the company follows: Annual Production 18,000 units 45,000 units a. Hubs require $35 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $19 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) Required 1 Required 2 Complete this question by entering your answers in the tabs below. Estimated Overhead 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. Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Cost $ 30,375 $ 282,000 $ 163,800 < Required 1 Hubs 125 4,700 NA Required 2 > Activity Sprockets 100 NA Total 225 4,700 NA Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.60 0.20 Hubs Sprockets Additional information about the company follows: Annual Production 18,000 units 45,000 units a. Hubs require $35 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $19 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) Required 1 Required 2 Complete this question by entering your answers in the tabs below. Estimated Overhead 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. Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Cost $ 30,375 $ 282,000 $ 163,800 < Required 1 Hubs 125 4,700 NA Required 2 > Activity Sprockets 100 NA Total 225 4,700 NA
Expert Answer:
Answer rating: 100% (QA)
Answer To compute the activity rate for each activity cost pool we divide the total cost of each pool by the total activity measure Lets calculate 1 Activity Rate for Machine Setups Activity Rate Tota... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Income Statement of Three years (in thousands) 2020 2019 2018 Net sales 5007357 4826549 4625364 Cost of sales 3238448 3156047 3069652 Gross profit 1768909 1670502 1555712 Selling, delivery and...
-
7. For a metric space (X, d), boundary of a set A is defined as bdA = clAnd(X-A). Prove each of the following for a set A: (i) The bdA is a closed set. (ii) A is closed if and only if bdA CA. (iii)...
-
1- What signal is produced if the sampling frequency is equal to Fm? 2- Find the range of the cutoff frequency funt for LPF required to reconstruct the original signal from the sampled one. 3- If the...
-
The latent heat of vaporization of H2O at body temperature (37.0 oC) is 2.42 106 J/kg. To cool the body of a 75-kg jogger [average specific heat capacity = 3500 J / (kg Co)] by 1.5 Co, how many...
-
Hannah's Home Decorators' adjusted trial balance columns of a worksheet are shown below. Required (a) Complete the worksheet and prepare and income statement, a statement of changes in equity and a...
-
Prove that, under the equivalent martingale measure \(\mathbb{Q}_{n}\) of Section 2.3.4, the ratio \(f_{t} B_{t}\) is a martingale. Data From Section 2.3.4, The mathematics of arbitrage relies on...
-
Use the NPV method to determine whether Kyler Products should invest in the following projects: Project A: Costs $260,000 and offers seven annual net cash inflows of $57,000. Kyler Products requires...
-
(a) A mutual fund raised Rs. 150 lakhs on April 1, 2018 by issue of 15 lakh units at Rs. 10 per unit. The fund invested in several capital market instruments to build a portfolio of Rs. 140 lakhs,...
-
V. N. Murti and V. K. Sastri investigated the production characteristics of various Indian industries, including cotton and sugar. They specified CobbDouglas production functions for output (Q) as a...
-
How do investors use stock fundamentals to construct portfolios? Please use any three fundamentals to illustrate the method.
-
For the problem min, || Ax - bl, we have that the SVD of A is such that 1 2 1 0.5 0.3 If x has dimension 3 and A has full column rank, find the minimum error norm. A = USVT,UTb =
-
You are watching a production, one performer is overacting badly, to the point that he or she is quite unbelievable. Another performer is listless and has no energy. In each case, to what extent do...
-
Calculate the net present value (NPV) of a project with an initial investment of $50,000, expected cash flows of $10,000 per year for 5 years, and a discount rate of 12%. Show all your calculations...
-
Can you provide a overview of budgeting and forecasting in financial management? Describe the various types of budgets and forecasting methods. Additionally, explain how to prepare a budget and a...
-
Kyle has a new business opportunity, but his company needs to raise an additional $5,000,000 for the new project. Kyle wants to know the cost of this capital if he chooses to raise funds by selling...
-
A steam engine runs at 150 r.p.m. Its turning moment diagram gave the following area measurements in mm taken in order above and below the mean torque line: 500, 250, 270, 390, 190, 340, 270, 250...
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
What is meant by residual income?
-
Would you expect a company in a rapidly growing technological industry to have a high or low dividend payout ratio?
-
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the companys operations: (a) The cash...
-
Prove that the boosted right-handed spinor \(\psi_{\mathrm{R}}(\boldsymbol{p})\) is related to the corresponding rest spinor by Eq. (14.21).
-
Use the \(\gamma\)-matrices in the Weyl representation to show that the Dirac equation (14.31) is equivalent to Eq. (14.25). Data from Eq. 14.31 Data from Eq. 14.25 (y"Pu-m)(p) = (iy" - m)(p) = 0
-
Prove the identity \((\sigma \cdot \boldsymbol{p})^{2}=\mathrm{I}^{(2)} p^{2}\), where \(\sigma=\left(\sigma_{1}, \sigma_{2}, \sigma_{3} ight)\) are the Pauli matrices, \(\boldsymbol{p}\) is the...
Study smarter with the SolutionInn App