contestada

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:

Direct
Labor-Hours per Unit Annual
Production
Hubs 0.70 13,000 units
Sprockets 0.30 50,000 units


Additional information about the company follows:
a.
Hubs require $29 in direct materials per unit, and Sprockets require $17.

b. The direct labor wage rate is $19 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:


Estimated Activity
Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total
Machine setups (number of setups) $ 27,000 125 100 225
Special processing (machine-hours) $ 175,500 3,900 0 3,900
General factory (organization-sustaining) $ 219,100 NA NA NA
1. Compute the activity rate for each activity cost pool.

Activity Cost Pool Activity Rate
Machine Setups per setup
Special Processing per MH
2. Determine the unit product cost of each product according to the ABC system.

Hubs Sprockets
Direct Materials ? ?
Direct Labor ? ?
Overhead ? ?
Unit Cost ? ?

Respuesta :

TomShelby

Answer:

                          Hubs Sprockets

Direct Materials   29            17

Direct Labor        13.3            5.7

Overhead            14.65          0.24

Unit Cost              56.95       22.94

Explanation:

Labor:

Hubs: 0.7 hours per unitx 19 labor rate = $13.3

Sprockets 0.3 x 19 = $5.7

Direct Materials:

Hubs $29

Sprockets $17

Overhead rate

Activity                         Pool   Hub          Sprockets

Machine Setups            225   125(55.56%) 100(44.44%)

Special processing 3900 3900    

Machine Setups

27,000 x 55.56% /13,000 units:  $   1.1538  

27,000 x 44.44% / 50,000 units  $  0.24

Special Processing

175,500/13,000 = $13.5

Total overhead

sprockets: $0.24

hubs: $14.65

Units cost:

hubs: 13.3  + 29 + 14.65 = 56.95

sprockets: 5.7 + 17 + 0.24 = 22.94

The company is termed as the legal entity that has a separate identity different from the owners. The company or the firm is established in order to produce or manufacture the goods and services for the satisfaction of the customers.  

The calculation of the various sub-parts of the context are:

                             Hubs       Sprockets  

Direct Materials      29            17  

Direct Labor          13.3            5.7  

Overhead            14.65          0.24  

Unit Cost              56.9          22.94

Labor Hubs: 0.7 hours per unit 19 labor rate = $13.3

Sprockets [tex]0.3 \times 19[/tex]= $5.7

Direct Materials:

Hubs $29

Sprockets $17

Overhead rate

Activity                           Pool         Hub                  Sprockets

Machine Setups            225      125(55.56%)        100(44.44%)

Special processing        3900        3900    

Machine Setups = [tex]\frac{ 27,000 \times 55.56\%}{13,000\: units}[/tex]= $   1.1538  

[tex]\frac{27,000 \times 44.44\%}{ 50,000 \:units }[/tex]= $  0.24

Special Processing = [tex]\frac{175500}{13000}[/tex] = $13.5

Total overhead

sprockets: $0.24

hubs: $14.65

Units cost:

hubs: 13.3  + 29 + 14.65 = 56.95

sprockets: 5.7 + 17 + 0.24 = 22.94

To know more about the calculation of the direct and the indirect materials, refer to the link below:

https://brainly.com/question/13214374

Otras preguntas