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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours pRequired: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product accordRequired: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product accord

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Answer #1
Required 1 :
Activity cost pool Activity rate [ Estimated overhead cost / Estimated total activity ]
Machine setups ( 26730 / 243 ) 110 per setup
Special processing ( 282000 / 4700 ) 60 per MH
Required 2 :
Overhead allocated [ Activity * Activity rate ]
Activity cost pool Hubs Sprockets
Machine setup 14850 11880
Special processing 282000 0
Total overhead allocated 296850 11880
Hubs Sprockets
Direct materials 24.00 14.00
Direct labor [ Direct labor hours per unit * Direct labor wage rate per hour ] 9.50 1.90
Overhead [ Total overhead allocated / Annual production ] 17.46 0.23
Unit cost 50.96 16.13
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