Compute the activity rate for each activity cost pool. 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 2Compute the activity rate for each activity cost pool.Activity Cost PoolActivity RateMachine setupspersetupSpecial processingper MH< Required 1Required 2 >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 1Required 2Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Roundyour answers to 2 decimal places.)HubsSprocketsDirect materialsDirect laborOverheadUnit cost0.00 S0.00< Required 1Required 2> Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4]Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow:DirectLabor-HoursperUnitAnnualProduction0.70 21,000 units0.30 51,000 unitsHubsSprocketsAdditional information about the company follows:a. Hubs require $27 in direct materials per unit, and Sprockets require $15.b. The direct labor wage rate is $15 per hour.c. Hubs require special equipment and are more complex to manufacture than Sprockets.d. The ABC system has the following activity cost pools:EstimatedActivityOverheadActivity Cost Pool (Activity Measure)Machine setups (number of setups)CostHubsSprockets Total$ 14,4008064144Special processing (machine-hours)$162,0003,6003,600General factory (organization-sustaining)$213,600NANANA

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Description: Compute the activity rate for each activity cost pool. 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

Activity based cost system is a type of costing method in which the costs are determined according…

Business

Accounting

Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Annual Production 0.70 21,000 units 0.30 51,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $15 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: Estimated Activity Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Cost Hubs Sprockets Total $ 14,400 80 64 144 Special processing (machine-hours) $162,000 3,600 3,60е General factory (organization-sustaining) $213,600 NA NA NA

Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO7-4] Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Annual Production 0.70 21,000 units 0.30 51,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $27 in direct materials per unit, and Sprockets require $15. b. The direct labor wage rate is $15 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: Estimated Activity Overhead Activity Cost Pool (Activity Measure) Machine setups (number of setups) Cost Hubs Sprockets Total $ 14,400 80 64 144 Special processing (machine-hours) $162,000 3,600 3,60е General factory (organization-sustaining) $213,600 NA NA NA

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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