Fogerty company makes two products titanium hubs and

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

Direct labor hours per Unit             Annual Production

Hubs 0.80 Units                            10000Units

Sprockets 0.40 Units                     40000 Units

Additional information about the company follows:
a. Hubs require $32 in direct materials per unit, and Sprockets require $18.
b. The direct labor wage rate is $15 per hour.
c. Hubs are more complex to manufacture than Sprockets and they require special processing.
d. The ABC system has the following activity cost pools

Reference no: EM13600676

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jam600676

8/25/2017 8:35:37 AM

I was not getting the right value for part 1 “activity rate”, I tried to get help from my friend but nothing good happened then I searched online and find the detailed answer at expertsmind.com, thanks to you guys

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