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Question 2 Danno Company manufactures two products, Product F and Product G. The company expects to produce and sell 600 units of Product F and
Question 2 Danno Company manufactures two products, Product F and Product G. The company expects to produce and sell 600 units of Product F and 6,000 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: Estimated Overhead Expected Activity Activity Cost Pool Costs Product F Product G Total Machine setups $5,250 60 150 210 $74,100 620 1,280 1,900 Purchase orders General factory $89,880 840 12,000 12,840 3 a. Determine the overhead cost per unit for each product using the activity-based costing approach. (7 marks) b. Compare and contrast traditional costing with the activity-based costing method
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