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I require help with all questions, thank you so much in advance! 1. Daston Company manufactures two products, Product F and Product G. The company
I require help with all questions, thank you so much in advance!
1. Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,600 units of Product F at a unit sales price of $75 and 3,000 units of Product G at a unit sales price of $68 during the current month. Data relating to the company's three activity cost pools are given below for the current month: Activity Cost Pools Machine setups Purchase orders Order size Total Activity Total Cost Product F Product G $ 14,960 130Setups 90Setups $ 63,360 6500rders 1,1100rders $ 32,240 1,280Hours* 1,200Hours Total 220setups 1,760orders 2,480Hours* *Hours are direct labor hours Other cost is information is summarized as follows: per Direct Materials unit Direct Labor cost per unit Product F $ 15 $ 16 Product G $ 17 $ 8 Required: a. Using the activity-based costing approach, determine the product margin for each product in total and per unit. Support all calculations and label all numbers. b. Do you see any room for improvement as far as Product F or G in the area of overhead activities? (Look at units made and resource consumption or activity level under each overhead cost poor)Step by Step Solution
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