HW7Q4. Only need the last fill in the blank answer. Fogerty Company makes two pr

Question

HW7Q4. Only need the last fill in the blank answer.

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit Production 0.80 18,000 units 0.40 52,000 units Annual Hubs Sprockets Additional information about the company follows: a. Hubs require $24 in direct materials per unit, and Sprockets require $19 b. The direct labor wage rate is $13 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 Activity Estimated Activity Cost Pool (Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (organization-sustaining) Overhead Cost Hubs Sprockets Total $ 28,125 $171,000 $284,800 125 3,800 NA 100 225 3,800 NA NA Required 1. Compute the activity rate for each activity cost pool Activity Cost Actvity Rate Machine setups Special processing $ Activity Rate 125 per 125 setup 45 per MH

Explanation / Answer

calculation of actvity cost rate for each activity cost pool

calculation of unit product cost

unit production cost $ 44.7681 $ 24.4404

pariculars estimated overhead cost number activities activity rate machine set ups $ 28,125 225 28125/225=$ 125 special processing $ 171,000 3,800 171000/3,800=$ 45

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