Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow:
Labor-Hours per Unit
Additional information about the company follows:
Hubs require $25 in direct materials per unit, and Sprockets require $19.
The direct labor wage rate is $15 per hour.
Hubs require special equipment and are more complex to manufacture than Sprockets.
The ABC system has the following activity cost pools:
|Activity Cost Pool (Activity Measure)||Overhead Cost||Hubs||Sprockets||Total|
|Machine setups (number of setups)||$||16,200||100||80||180|
|Special processing (machine-hours)||$||188,000||4,700||0||4,700|
|General factory (organization-sustaining)||$||196,700||NA||NA||NA|
Determine the unit product cost of each product according to the ABC system.
Direct Materials ?? ??
Direct Labor ?? ??
Overhead ?? ??
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