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Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit e.70 e.30 Annual Production Hubs 13,000 units 50, e00 units Sprockets Additional Information about the company follows: a. Hubs require $30 In direct materials per unit, and Sprockets requlre $19. b. The direct labor wage rate is $19 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: Estinated Overhead Cost Activity Sprockets 80 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (nachine-hours) General factory (organization-sustaining) Hubs 100 Total 180 $ 19,800 $ 110,000 $ 144,100 4,400 NA 4,400 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. 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 S 0.00

Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit e.70 e.30 Annual Production Hubs 13,000 units 50, e00 units Sprockets Additional Information about the company follows: a. Hubs require $30 In direct materials per unit, and Sprockets requlre $19. b. The direct labor wage rate is $19 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: Estinated Overhead Cost Activity Sprockets 80 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (nachine-hours) General factory (organization-sustaining) Hubs 100 Total 180 $ 19,800 $ 110,000 $ 144,100 4,400 NA 4,400 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. 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 S 0.00

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit Annual Production Hubs e.70 13,e00 units Sprockets e. 30 50, e00 units Additional Information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets requlre $19. b. The direct labor wage rate is $19 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: Activity Sprockets Estimated Overhead Total Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Cost $ 19,800 $ 118,000 $ 144,100 Hubs 100 4,400 180 4,400 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. 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 S 0.00
Transcribed Image Text:Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit Annual Production Hubs e.70 13,e00 units Sprockets e. 30 50, e00 units Additional Information about the company follows: a. Hubs require $30 in direct materials per unit, and Sprockets requlre $19. b. The direct labor wage rate is $19 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: Activity Sprockets Estimated Overhead Total Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Cost $ 19,800 $ 118,000 $ 144,100 Hubs 100 4,400 180 4,400 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. 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 S 0.00
Fogerty Company makes two products-itanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit Annual Production Hubs e.70 13,e00 units Sprockets e.30 50,e00 units Additional Information about the company follows: a. Hubs require $30 In direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $19 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: Activity Sprockets 80 Estinated Overhead Total 180 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (nachine-hours) General factory (organization-sustaining) Cost Hubs $ 19,880 $ 110,e00 $ 144,180 100 4,400 NA 4,400 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Activity Rate per setup per MH Special processing Required 1 Required 2 >
Transcribed Image Text:Fogerty Company makes two products-itanlum Hubs and Sprockets. Data regarding the two products follow. Direct Labor-Hours per Unit Annual Production Hubs e.70 13,e00 units Sprockets e.30 50,e00 units Additional Information about the company follows: a. Hubs require $30 In direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $19 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: Activity Sprockets 80 Estinated Overhead Total 180 Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (nachine-hours) General factory (organization-sustaining) Cost Hubs $ 19,880 $ 110,e00 $ 144,180 100 4,400 NA 4,400 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Activity Rate per setup per MH Special processing Required 1 Required 2 >
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