Using the activity-based costing approach, determine the overhead cost per unit for each product.

Danno Company manufactures two products, Product F and Product G. The company expects to produce and sell 600 units of Product F and 6,000 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:

 

Estimated

Expected Activity

 

Overhead

 

 

 

Activity Cost Pool

Costs

Product F

Product G

Total

Machine setups

$5,250

60

150

210

Purchase orders

$74,100

620

1,280

1,900

General factory

$89,880

840

12,000

12,840

Required:

Using the activity-based costing approach, determine the overhead cost per unit for each product.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now