Danton Company manufactures two products, Product F and Product G. The company expects to produce and sell 600 units of Product F and 3,000 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:
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Expected Activity
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Activity Cost Pool
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Estimated Overhead Costs
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Product F
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Product G
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Total
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Machine setups......
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$13,720
|
140
|
140
|
280
|
|
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Purchase orders......
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$74,730
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630
|
960
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1,590
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|
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General factory......
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$15,000
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600
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2,400
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3,000
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Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product.