Business, 06.11.2019 05:31 trevorhenyan51

Fogerty company makes two products, titanium hubs and sprockets. data regarding the two products follow:

direct labor hours per unitannual production

hubs 0.80 units1units

sprockets 0.40 units4 units

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 are more complex to manufacture than sprockets and they require special processing.
d. the abc system has the following activity cost pools

activity cost pool (activity measure) overhead
costhubssprocketstot
machine set up ( number of set ups)$72000100300400
special processing ( machine hours)$255000
general factory (direct labor hours)$81600080001600024000

required:
1. compute the activity rate(i. e predetermined overhead state) for each activity cost pool.
2. determine the unit cost of each product according to the abc system.

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Fogerty company makes two products, titanium hubs and sprockets. data regarding the two products fol...

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