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Danno Company manufactures two products, product F and product G. The company uses activity based costing to compute unit product cost. Data relating to the
Danno Company manufactures two products, product F and product G. The company uses activity based costing to compute unit product cost. Data relating to the company's three activity centers are given below:
Activity center | Estimated overhead costs | Total expected activity | Expected activity, Product F | Expected activity, Product G |
Machine set up | $2,000 | 200 | 50 | 150 |
Purchase orders | $4,000 | 2,000 | 500 | 1,500 |
General factory | $8,000 | 8,000 | 2,000 | 6,000 |
Total | $14,000 |
Using the activity based costing approach, total overhead applied for product F is:
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