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