Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,350 units of Product F and 2,250 units of Product G during the current year. Data relating to the company's three activity cost pools are given below for the current year: Activity Cost Pools Machine setups Purchase orders Order size Total Cost $ 30,771 $ 188,360 $ 114,880 Overhead Cost Per Unit Product F 124 setups 780 orders 3,120 hours Total Activity Product G 139 setups 1,990 orders 4,060 hours Total 263 setups 2,770 orders. 7,180 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.)
Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,350 units of Product F and 2,250 units of Product G during the current year. Data relating to the company's three activity cost pools are given below for the current year: Activity Cost Pools Machine setups Purchase orders Order size Total Cost $ 30,771 $ 188,360 $ 114,880 Overhead Cost Per Unit Product F 124 setups 780 orders 3,120 hours Total Activity Product G 139 setups 1,990 orders 4,060 hours Total 263 setups 2,770 orders. 7,180 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,350 units of
Product F and 2,250 units of Product G during the current year. Data relating to the company's three activity cost pools are given
below for the current year:
Activity Cost Pools
Machine setups
Purchase orders
Order size
Product F
Product G
Total Cost
$ 30,771
$ 188,360
$ 114,880
Overhead
Cost Per Unit
$ 49.99
Product F
124 setups
780 orders
3,120 hours
Total Activity
Product G
139 setups
1,990 orders
4,060 hours
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal
places.)
Total
263 setups
2,770 orders
7,180 hours
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