Unit product cost Product C Machine setups Purchase orders $ Activity Cost Pools Order size Total 58.19 Product D b. 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: $ 73.26 Estimated Overhead Costs $ 12,890 77,340 94,680 $184,910 Product C 180 960 7,885 Expected Activity Product D 190 1,300 6,700 Total 370 2,260 14,585 Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.)
Unit product cost Product C Machine setups Purchase orders $ Activity Cost Pools Order size Total 58.19 Product D b. 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: $ 73.26 Estimated Overhead Costs $ 12,890 77,340 94,680 $184,910 Product C 180 960 7,885 Expected Activity Product D 190 1,300 6,700 Total 370 2,260 14,585 Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Unit product cost
Machine setups
Purchase orders
Product C
Activity Cost Pools
Order size
Total
$
Unit product cost
58.19
b. 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:
Estimated Overhead
Product D
$
Product C
73.26
Costs
$ 12,890
77,340
94,680
$184,910
Product C
180
960
7,885
Product D
Expected Activity
Product D
Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your
intermediate calculations and final answers to 2 decimal places.)
190
1,300
6,700
Total
370
2,260
14,585
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