Question Completion:
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:
                                     Direct Labor     Production
                                  hours per unit          Units
Hubs                                  0.7                 27,000
Sprockets                          0.3                59,000
  Answer:
Fogerty Company
The unit product cost of each product according to the ABC system:
                                            Hubs      Sprockets
Unit production cost       $46.22         $22.46
Explanation:
a) Data and Calculations:
                                           Hubs  Sprockets
Direct materials per unit    $24      $17
Direct labor rate per hour  $14       $14
Direct labor per unit           $9.80   $4.20 ($14 *0.3)
Estimated Activity  Activity Cost Pool Overhead     Hubs  Sprockets  Total 
                               (Activity Measure)      Cost 
Machine setups (number of setups)    $ 27,000       125         100       225 
Special processing (machine-hours) $ 258,000   4,300             0    4,300 
General factory (organization-sustaining) $ 124,800 NA          NA        NA
Total overhead expenses                   $409,800
Activity rate:
Machine setups = $120 ($27,000/225)
Special processing = $60 ($258,000/4,300)
General factory = $62,400 ($124,800/2)
2. The unit product cost of each product according to the ABC:
Overhead costs:
                                     Hubs      Sprockets    Total 
Machine setups       $15,000      $12,000       $27,000
Special processing 258,000                  0      258,000
General factory         62,400        62,400       124,800
Total overhead     $335,400      $74,400    $409,800
Units produced         27,000        59,000        86,000
Overhead per unit    $12.42            $1.26
                                             Hubs      Sprockets
Direct materials per unit  $24.00          $17.00
Direct labor per unit           $9.80           $4.20
Overhead cost per unit    $12.42            $1.26
Unit production cost       $46.22         $22.46