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Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours pFogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours p

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Answer #1
Required 1 :
Activity cost pool Activity rate
Machine setups ( 30240 / 252 ) 120 per setup
Special processing ( 120000 / 4000 ) 30 per MH
Required 2 :
Overhead allocated [ Activity * Activity rate ]
Activity cost pool Hubs Sprockets
Machine setup 16800 13440
Special processing 120000 0
Total overhead allocated 136800 13440
Hubs Sprockets
Direct materials 36.00 14.00
Direct labor [ Direct labor hours per unit * Direct labor wage rate per hour ] 10.20 3.40
Overhead [ Total overhead allocated / Annual production ] 8.55 0.24
Unit cost 54.75 17.64
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