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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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