Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.90 0.50 Annual Production 24,000 units 49,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $28 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $13 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) Estimated Overhead Cost $ 17,280 $ 164,500 $ 266,600 Hubs 80 4,700 ΝΑ Activity Sprockets 64 0 ΝΑ Total 144 4,700 ΝΑ
Exercise 7-13 (Algo) Computing ABC Product Costs [LO7-3, LO Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit 0.90 0.50 Annual Production 24,000 units 49,000 units Hubs Sprockets Additional information about the company follows: a. Hubs require $28 in direct materials per unit, and Sprockets require $16. b. The direct labor wage rate is $13 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) Estimated Overhead Cost $ 17,280 $ 164,500 $ 266,600 Hubs 80 4,700 ΝΑ Activity Sprockets 64 0 ΝΑ Total 144 4,700 ΝΑ
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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