Cabigas company manufactures two products

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Reference no: EM13951969

Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $355,840 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below:

	Product C			Product D
Estimated volume		2,000	units			2,700	units
Direct labor-hours per unit		4.50	hours			1.80	hour
Direct materials cost per unit	$	24.00			$	26.60
Direct labor cost per unit	$	34.00			$	11.60

Required:

The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:

Activities	Estimated Overhead Costs		Expected Activity
Activities	Estimated Overhead Costs		Product C	Product D	Total
Machine setups	$	22,230	180	210	390
Purchase orders		162,250	1,250	1,500	2,750
General factory		171,360	5,000	3,160	8,160

Total	$	355,840

Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.)

	Product C	Product D
Unit product cost	$	$

Reference no: EM13951969

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