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Danno Company manufactures two products, Product F and Product G. The company expects to produce and sell 600 units of Product F and 6,000 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:
Estimated Overhead
Expected Activity
Activity Cost Pool
Costs
Product F
Product G
Total
Machine setups
$5,250
60
150
210
Purchase orders
$74,100
620
1,280
1,900
General factory
$89,880
840
12,000
12,840
$130,890
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product.
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