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Alphabet Company manufactures two products, Product Fand Product G. The company expects to produce and sell 2,900 units of Product F and 3,300 units
Alphabet Company manufactures two products, Product Fand Product G. The company expects to produce and sell 2,900 units of Product F and 3,300 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: Estimated Expected Activity Activity Cost Pool Overhead Cost Product F Product G Total Machine setups $ 19,440 144 setups 96 setups 240 setups Purchase orders $ 111,720 798 orders 1,482 orders 2,280 orders General factory $ 65,520 1,310 hours 1,210 hours 2,520 hours Required: Using the activity-based costing approach, compute the activity rate for each activity then determine the total overhead cost per unit for each product. Show all work to earn credit.
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