Daba Company manufactures two products, Product F and Product G. The company expects to produce...
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Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,300 units of Product F and 1,700 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year:
| Activity Cost Pool | Estimated Overhead Cost | Expected Activity | |||||
|---|---|---|---|---|---|---|---|
| Product F | Product G | Total | |||||
| Machine setups | $ 14,300 | 132 | setups | 88 | setups | 220 | setups |
| Purchase orders | $ 84,480 | 896 | orders | 1,664 | orders | 2,560 | orders |
| Order size | $ 24,800 | 1,290 | hours | 1,190 | hours | 2,480 | hours |
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product.
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