accounting ABC

Exercise 7-13 (Static) Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products - titanium Hubs and Sprockets. Data regarding the two products follow: Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $18 b. The direct labor wage rate is $15 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 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