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 18,000 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 18,000 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:
Activity Cost Pool | Estimated Overhead Costs | Expected Activity | |||||
Product F | Product G | Total | |||||
Machine setups | $ | 18,480 | 132 | 88 | 220 | ||
Purchase orders | $ | 124,800 | 840 | 1,560 | 2,400 | ||
General factory | $ | 71,920 | 1,290 | 1,190 | 2,480 | ||
Determine the overhead cost per unit for each product using the activity-based costing approach. (Do not round your intermediate calculations. Round your final answers to 2 decimal places.) |
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