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Cabat company is considering using an activity-based costing system to compute unit product costs for...

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Accounting

Cabat company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:
Activity Cost Pools Estimated Overhead Costs Product C Product D Total
Machine setups $12,190 110 120 230
Purchase orders 75,240 820 1160 1980
General factory 90,480 4560 2400 6960
Total $177,910
Determine the unit product cost of Product C using the ABC approach.

a. $47.73 per unit b. $53.07 per unit c. $58.11 per unit
Determine the unit product cost of Product D using the ABC approach.
a. $47.73 per unit b. $53.07 per unit c. $58.11 per unit

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