$4$

$12$

points

$01$:$18$:$20$

$01$:$18$:$20$

$01$:$18$:$20$

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

$\backslash$table$[[,$Direct Labor$-$Hours,$],[,$per Unit,Annual Production$],[$Hubs$,0\mathrm{.}80,18,000$ units$],[$Sprockets$,0\mathrm{.}40,55,000$ units$]]$

Additional information about the company follows:

a$.$ Hubs require $$31$ in direct materials per unit, and Sprockets require $$13.$

b$.$ The direct labor wage rate is $$18$ 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:

$\backslash$table$[[,$Estimated Overhead,,Activity,$],[$Activity Cost Pool $($Activity Measure$),$Cost,Hubs,Sprockets,Total$],[$Machine setups $($number of setups$),$$$29,160,135,243,],[$Special processing $($machine$-$hours$),$$$111,000,3,700,0,3,700],[$General factory $($organization$-$sustaining$),$$$256,400,$NA$,$NA$,$NA$]]$

Required:

Compute the activity rate for each activity cost pool.

Determine the unit product cost of each product according to the ABC system.

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