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Determine the overhead cost per unit for each product

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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

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: EM131753104

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