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Question 4 - Crampette Company (10 marks) Crampette Company manufactures two products, Product F and Product G. The company is considering using activity based costing
Question 4 - Crampette Company (10 marks) Crampette Company manufactures two products, Product F and Product G. The company is considering using activity based costing to compute unit product costs. The company expects to produce and sell 1,600 units of Product F and 3,000 units of Product G dur Estimated data related to the company's three activity cost pools are given below for the upcoming Estimated Expected Activity Activity Cost Pool Overhead Costs Product F Product G Total Machine setups 15,631 130 90 220 Purchasing 62.526 650 1,110 1,760 General Factory 31.263 1,280 1,200 2,480 Total 109,420 NOTE: If the data above is blank it means you haven't entered your student number on the Co Required: Please answer the following 2 questions using the data above. I have left space after each question If you need more space you can insert rows. Please do not use column A as I would like to use it to 1 Using the activity based costing approach, determine the estimated overhead cost per unit for Show your work to get full marks. (6 marks) 2 If Crampette uses the traditional method of allocating overhead then estimated overhead of would be allocated to each of Product F and G. Compare this to your results in 1 above and pro action items that you believe management should take going forward given the differing results versus the traditional method of allocating overehead. (4 marks)
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