Determine the overhead cost per unit for each product


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:

Expected Activity

Activity Cost Pool Estimated Overhead Costs Product F Product G Total
Machine setups $13,720 140 140 280
Purchase orders $74,730 630 960 1,590
General factory $15,000 600 2,400 3,000

Required:

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

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Accounting Basics: Determine the overhead cost per unit for each product
Reference No:- TGS096918

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