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Question - 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
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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