Question
Dace Company manufactures two products, Product F and Product G. The company expects to produce and sell 3,200 units of Product F and 2,100 units
Dace Company manufactures two products, Product F and Product G. The company expects to produce and sell 3,200 units of Product F and 2,100 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:
Total ActivityActivity Cost PoolTotal CostProduct FProduct GTotalMachine setups$15,500250setups250setups500setupsPurchase orders$74,620580orders1,240orders1,820ordersOrder size$143,2204,120hours2,700hours6,820hours
Required:
Determine the overhead cost per unit for each product using the activity-based costing approach
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