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Question 2 (20 Marks) Cysta Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product
Question 2 (20 Marks) Cysta Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs. Data relating to the company's three activity cost pools are given below for the current year: Expected Activity Activity Cost Pool Estimated Product F Product G Total Overhead Costs Machine setups $10,800 80 100 180 Purchase orders $77,520 510 1,010 1,520 General factory $75,920 2,240 3,600 5,840 Required: Using the activity-based costing approach a. Calculate the activity rates for the three activity cost pools b. Determine the overhead costs applied to each product c. Determine the overhead cost per unit for each product
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