Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,200 units of Product F and 2,600 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 Machine setups Purchase orders Order size Overhead cost per unit Estimated Overhead Cost $19,240 $84,000 $48,640 1,330 hours Product F Product F 156 setups 700 orders Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.) Product G Expected Activity Product G 104 setups 1,300 orders 1,230 hours Total 260 setups 2,000 orders 2,560 hours
Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,200 units of Product F and 2,600 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 Machine setups Purchase orders Order size Overhead cost per unit Estimated Overhead Cost $19,240 $84,000 $48,640 1,330 hours Product F Product F 156 setups 700 orders Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.) Product G Expected Activity Product G 104 setups 1,300 orders 1,230 hours Total 260 setups 2,000 orders 2,560 hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,200 units of
Product F and 2,600 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
Machine setups
Purchase orders
Order size
Overhead cost per unit
Estimated
Overhead
Product F
Cost
$19,240
$84,000
Product F
156 setups
700 orders
$48,640 1,330 hours
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal
places.)
Expected Activity
Product G
104 setups
1,300 orders
1,230 hours
Product G
Total
260 setups
2,000 orders
2,560 hours
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