Determine the overhead cost per unit for each product


Darter Company manufactures two products, Product F and Product G. The company expects to produce and sell 3,500 units of Product F and 6,300 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
  • Overhead
  • Estimated Activity

Activity Cost Pool Costs Product F Product G Total

  • Machine setups $ 9,728 71 185 256
  • Purchase orders $ 87,560 750 1,240 1,990
  • General factory $ 74,880 2,420 3,340 5,760

Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product. Fill in all steps.

(Round your answers to 2 decimal places. Omit the "$" sign in your response.)

  • Activity Cost Pool Rate
  • Machine setups $
  • Purchase orders $
  • General factory $

(Round your answers to the nearest dollar. Omit the "$" sign in your response.)

  • Product F Product G
  • Amount Amount
  • Machine setups $ $
  • Purchase orders
  • General factory

Total overhead cost $ $
(Round your answers to 2 decimal places. Omit the "$" sign in your response.)

  • Product F Product G
  • Overhead cost per unit $ $

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Accounting Basics: Determine the overhead cost per unit for each product
Reference No:- TGS0704770

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