Determine the overhead cost per unit for each product

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Reference no: EM132217254

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
Activity Cost Pool	Estimated Overhead Cost	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.

Reference no: EM132217254

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