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Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.88 28,000 units e.40 58,00e units Hubs Sprockets Additional Information about the company follows:

Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Annual Unit Production 0.88 28,000 units e.40 58,00e units Hubs Sprockets Additional Information about the company follows:

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead Unit cost $ 0.00 $ 0.00
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Hubs Sprockets Direct materials Direct labor Overhead Unit cost $ 0.00 $ 0.00
Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets Direct Labor- Hours per Unit Additional Information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $13. b. The direct labor wage rate is $18 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: Annual Production 0.88 28,000 units 0.40 58,000 units Activity Cost Pool (Activity Measure) Machine setups (number of setups) Required 1 Special processing (nachine-hours) General factory (organization-sustaining) Activity Cost Pool Machine setups Special processing Required 2 Estimated Overhead Cost 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. Compute the activity rate for each activity cost pool. Activity Rate per setup per MH $ 22,230 $236,500 $138,400 Complete this question by entering your answers in the tabs below. Activity Hubs Sprockets 95 4,300 NA 76 8 NA Total 171 4,300 NA
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 Additional Information about the company follows: a. Hubs require $33 in direct materials per unit, and Sprockets require $13. b. The direct labor wage rate is $18 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: Annual Production 0.88 28,000 units 0.40 58,000 units Activity Cost Pool (Activity Measure) Machine setups (number of setups) Required 1 Special processing (nachine-hours) General factory (organization-sustaining) Activity Cost Pool Machine setups Special processing Required 2 Estimated Overhead Cost 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. Compute the activity rate for each activity cost pool. Activity Rate per setup per MH $ 22,230 $236,500 $138,400 Complete this question by entering your answers in the tabs below. Activity Hubs Sprockets 95 4,300 NA 76 8 NA Total 171 4,300 NA
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