Daston Company manufactures two products, Product F and Product G. The company e
ID: 2590663 • Letter: D
Question
Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,330 units of Product F and 2,280 units of Product G during the current year. Data relating to the company’s three activity cost pools are given below for the current year:
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.)
Total Activity Product G Total Activity Cost Pools Machine setups Purchase orders General factory Total Cost Product F $40,42!5 $141,8460 $110,100 3,e60 hour:s 90 setups 710 orders 185 setups 275 setups 1,260 orders 4,280 hours 1,970 orders 7,340 hoursExplanation / Answer
Activity cost pools Activity rate Machine setups 147 =40425/275 Purchase orders 72 =141840/1970 General factory 15 =110100/7340 Product F Product G Machine setups 13230 27195 Purchase orders 51120 90720 General factory 45900 64200 Total overhead 110250 182115 Total units 2330 2280 Overhaed per unit 47.32 79.88
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