Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow. Direct Labor-...
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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow. Direct Labor- Hours Annual per Unit Production 0.70 11,000 units 0.30 40,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $35 in direct materials per unit, and Sprockets require $13. 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: Estimated Overhead Activity Activity Cost Pool (Activity Heasure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Cost Hubs Sprockets Total $ 20,250 90 72 162 $125,000 5,000 5,000 $247,700 NA NA NA 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 Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow. Direct Labor- Hours Annual per Unit Production 0.70 11,000 units 0.30 40,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $35 in direct materials per unit, and Sprockets require $13. 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: Estimated Overhead Activity Activity Cost Pool (Activity Heasure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Cost Hubs Sprockets Total $ 20,250 90 72 162 $125,000 5,000 5,000 $247,700 NA NA NA 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
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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