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Question - Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,800 units of Product F and 2,200 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:
Activity Cost Pool
Estimated Overhead Cost
Expected Activity
Product F
Product G
Total
Machine setups
$18,200
156 setups
104 setups
260 setups
Purchase orders
$69,920
644 orders
1,196 orders
1,840 orders
Order size
$38,400
1,330 hours
1,230 hours
2,560 hours
Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.
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