Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets...
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: Hubs Sprockets Direct Labor-Hours per Unit 0.70 0.30 Annual Production 25,000 units 42,000 units Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $11. b. The direct labor wage rate is $13 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) Estimated Overhead Activity Cost $ 21,600 Hubs 120 Sprockets 96 Total $ 203,500 $ 156,100 3,700 0 216 3,700 NA NA NA General factory (organization-sustaining) 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 Machine setups Special processing Activity Rate per setup per MH Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor-Hours per Unit 0.70 0.30 Annual Production 25,000 units 42,000 units Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $11. b. The direct labor wage rate is $13 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) Estimated Overhead Activity Cost $ 21,600 Hubs 120 Sprockets 96 Total $ 203,500 $ 156,100 3,700 0 216 3,700 NA NA NA General factory (organization-sustaining) 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 Machine setups Special processing Activity Rate per setup per MH
Expert Answer:
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...
-
THE iterative software development method. Just read the case thoroughly and answer the below-mentioned 3 questions. Here are the three questions to be answered: 1. What are the two choices Lalonde...
-
The logistic population growth model is described by an equation of the form P(t) = PL/(1 cekt) , Where PL, c, and k > 0 are constants, and P(t) is the population at time t. PL represents the...
-
What are the social groups to which you belong that shape your standpoint? Are some more influential than others? How do they affect your view of the world? Is it possible for you to answer these...
-
Based on the results of a life-testing experiment, a manufacturer says there is a 0.07 probability that a randomly chosen component will last for 3 hours. Classify the statement as an example of...
-
Why is organizational diagnosis essential to the success of any change effort?
-
Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 10,700 units during November. The following production activity in both units and costs...
-
Write a paper on Nigeria and answer the following questions: 1. What is the population? 2. What is the average life span of individuals in that country? 3. What is the country's biggest export? 4....
-
How does globalization contribute to the spatial reconfiguration of power relations, including the rise of new economic hubs and the persistence of geopolitical inequalities between the Global North...
-
Immigration Law and Admin How has racism shaped American immigration law and policy? In responding to this discussion question, please use at least three (3) sources from the UTEP online library,...
-
How might the COVID-19 pandemic serve as a catalyst for reconfiguring the parameters of globalization, including shifts in global trade patterns, the reevaluation of supply chain vulnerabilities, and...
-
What are the Characteristics of value stocks? Explain all Characteristics in detail.
-
Discuss who are protected by immigration laws? How are they protected by immigration laws?
-
Find at least three online demos of Sentiment Analysis software. Find at least three different movie reviews where the user also includes a score. For example customer movie reviews on Amazon and...
-
Suppose the market is semistrong form efficient. Can you expect to earn excess returns if you make trades based on? a. Your brokers information about record earnings for a stock? b. Rumors about a...
-
Consider a strategy of the form \((\gamma, 0,0)\) for the investment wheel. Show that the overall factor multiplying your money after \(n\) steps is likely to be \((1+2 \gamma)^{n / 2}(1-\gamma)^{n /...
-
Using the notation of Exercise 4, assume that \(\sum_{i=1}^{n} 1 / r_{i}=1\), but try to find a solution where one of the \(\alpha_{k}\) 's is zero. In particular, suppose the segments are ordered in...
-
Consider a wheel with \(n\) sectors. If the wheel pointer lands on sector \(i\), the payoff obtained is \(r_{i}\) for every unit bet on that sector. The chance of landing on sector \(i\) is \(p_{i},...
Study smarter with the SolutionInn App