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Business, 22.07.2020 19:01 cogger9348

Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.70 18,000 units Sprockets 0.30 58,000 units Additional information about the company follows: Hubs require $26 in direct materials per unit, and Sprockets require $11. The direct labor wage rate is $14 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 16,200 90 72 162 Special processing (machine-hours) $ 147,000 4,200 0 4,200 General factory (organization-sustaining) $ 308,400 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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Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products foll...
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