Evaluate the unit product cost of each product

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Reference no: EM1314112

Computation of cost of the products based on Activity Based Costing.

The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:

Activity	Estimated Overhead	Expected Activity
Cost Pool	Costs	Product C	Product D	Total
Machine setups	$13,630	130	160	290
Purchase orders	85,750	750	1,000	1,750
General factory	67,760	4,000	2,160	6,160
	$167,140

Determine the unit product cost of each product for the current period using the activity-based costing approach.

Reference no: EM1314112

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