Please do not give solution in image format thanku Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow:DirectLabor-Hours:HubsSprocketsperUnitAnnualProduction.0.80 25,000 units0.40 48,000 unitsAdditional information about the company follows:a. Hubs require $34 in direct materials per unit, and Sprockets require $13.b. The direct labor wage rate is $17 per hour.c. Hubs require special equipment and are more complex to manufacture than Sprockets.d. The ABC system has the following activity cost pools:Activity Cost Pool (Activity Measure)Machine setups (number of setups)Special processing (machine-hours)General factory (organization-sustaining)Required 1 Required 2Activity Cost PoolMachine setupsSpecial processingEstimatedOverheadCostCompute the activity rate for each activity cost pool.Activity Rate:persetupper MH$ 21,780$ 72,000$192,800Required:1. Compute the activity rate for each activity cost pool.2. Determine the unit product cost of each product according to the ABC system.ActivityHubs Sprockets110Complete this question by entering your answers in the tabs below.3,600NA880NATotal1983,600NA Additional information about the company follows:a. Hubs require $34 in direct materials per unit, and Sprockets require $13.b. The direct labor wage rate is $17 per hour.c. Hubs require special equipment and are more complex to manufacture than Sd. The ABC system has the following activity cost pools:Activity Cost Pool (Activity Measure).Machine setups (number of setups)Special processing (machine-hours)General factory (organization-sustaining)Required 1 Required 2Complete this question by entering your answers in the tabs below.Direct materialsDirect laborOverheadUnit costEstimatedOverheadCost$ 21,780$ 72,000$192,800HubsHubsRequired:1. Compute the activity rate for each activity cost pool.2. Determine the unit product cost of each product according to the ABC system.Sprockets< Required 11103,600NADetermine the unit product cost of each product according to the ABC system. (Do noyour answers to 2 decimal places.)AtSpRequired 2 >

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Description: Please do not give solution in image format thanku Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow:DirectLabor-Hours:HubsSprocketsperUnitAnnualProduction.0.80 25,000 units0.40 48,000 unitsAdditio

Overheads are the costs that are not directly related to the product or service. Overheads include…

Answered: Required: 1. Compute the activity rate…

Business

Accounting

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9PA: Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to...

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