Fogerty Company Activity Cost Pool

Solution is available here for U$5

[The following information applies to the questions displayed below.]
 

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:

 

	Direct Labor-Hours per unit	Annual Production
Hubs	0.80	19,000 units
Sprockets	0.40	78,000 units

 

Additional information about the company follows:

a. Hubs require $17 in direct materials per unit, and Sprockets require $11.

b. The direct labor wage rate is $15 per hour.

c. Hubs are more complex to manufacture than Sprockets and they require special equipment.

d. The ABC system has the following activity cost pools:

		Estimated Overhead			Activity
Activity Cost Pool	Activity Measure	Cost		Hubs	Sprockets	Total
Machine setups	Number of setups	$	24,000	95	94	189
Special processing	Machine-hours	$	170,000	4,100	1	4,101
General factory	Direct labor-hours	$	271,000	15,200	31,200	46,400

 6.

value:
1 points

 

Requirement 1:

Compute the activity rate (i.e., predetermined overhead rate) for each activity cost pool. (Do not round intermediate calculation. Round your final answers to 2 decimal places. Omit the "$" sign in your response.)

Activity Cost Pool	Activity Rate
Machine setups	$	per setup
Special processing	$	per MH
General factory	$	per DLH

Check My WorkeBook Links (2) References

Worksheet	Learning Objective: 03-2
Difficulty: Basic	Learning Objective: 03-3

 

7.

value:
1 points

 

Requirement 2:

Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculation. Round your final answers to 2 decimal places. Omit the "$" sign in your response.)

Unit product cost of Hubs	$
Unit product cost of Sprockets	$

Check My WorkeBook Links (2) References

Worksheet	Learning Objective: 03-2
Difficulty: Basic	Learning Objective: 03-3