Cooke Company manufactures two products, Product F and Product G. The company expects to produce...
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Accounting
Cooke Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Below are current year data for the company's three activity cost pools.
| Total Activity | ||||||||||
| Activity Cost Pool | Total Cost | Product F | Product G | Total | ||||||
| Machine setups | $ | 10,800 | 80 | setups | 100 | setups | 180 | setups | ||
| Purchase orders | $ | 77,520 | 510 | orders | 1,010 | orders | 1,520 | orders | ||
| General factory | $ | 75,920 | 2,240 | hours | 3,600 | hours | 5,840 | hours | ||
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product.
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