ABC Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-...

Transcribed Image Text:

ABC Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Production Unit Hubs Sprockets 0.80 17,000 units 0.40 47,000 units Additional information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $15. 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: Activity Estimated Overhead Cost Activity Cost Pool (Activity Measure) Hubs Sprockets 125 Machine setups (number of setups) $ 23,625 100 Special processing (machine-hours) 4,100 0 $205,000 $126,400 General factory (organization-sustaining) ΝΑ ΝΑ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Total 225 4,100 NA ABC Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Production Unit Hubs Sprockets 0.80 17,000 units 0.40 47,000 units Additional information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $15. 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: Activity Estimated Overhead Cost Activity Cost Pool (Activity Measure) Hubs Sprockets 125 Machine setups (number of setups) $ 23,625 100 Special processing (machine-hours) 4,100 0 $205,000 $126,400 General factory (organization-sustaining) ΝΑ ΝΑ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Activity Rate Machine setups per setup Special processing per MH Total 225 4,100 NA

Answer rating: 100% (QA)

1 Activity Rate Estimated overhead Total Activity Machine Setups 23625 225 105 pe... View the full answer