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Determine the overhead cost per unit for each product

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Reference no: EM132514143

Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product F and 1,800 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  Product F  Product G                 Total

Machine setups                   $10,800                        80                         100                        180
Purchase orders                   $77,520                        510                     1,010                    1,520
General factory                    $75,920                      2,240                   3,600                       5,840

Required:

Question 1: Using the activity-based costing approach, determine the overhead cost per unit for each product.

Reference no: EM132514143

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