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3) Fortune-Well Company manufactures two products, Product F and Product G. During the current year, the company expects to produce and sell 1,400 units of
3) Fortune-Well Company manufactures two products, Product F and Product G. During the current year, the company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G. 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 General factory Expected Activity Estimated Overhead Cost Product F $10,800 80 77,520 510 75,920 2,240 Product G Total 100 180 1,010 1,520 3,600 5,840 Required: Using the following templates with activity-based costing approach, calculate the overhead cost per unit for each product. | (Disclose ALL supporting calculation steps) The overhead rates for each activity centre are as follows: Activity Centre Machine setups Purchase orders General factory Calculations: The overhead cost charged to each product is: Machine setups Purchase orders General factory Total overhead cost Calculations
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