Compute unit product costs for external reports

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Reference no: EM13646409

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.

Reference no: EM13646409

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