-> c o lo ezto.rmheducat 2. Dace Company manufactures two products, Product F an

Question

-> c o lo ezto.rmheducat 2. Dace Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,600 units of Product F and 12,000 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 Activity Acthity Cost Pool Ovorhead Costs Machine setups Purchase orders General factory 20,280 99,360 $ 58,880 104 156 756 1,404 260 2,160 2,560 330 1230 2 Required Determine the overhead cost per unit for each product using the activity-based costing approach. (Do not round your intermediate calculations. Round your final answers to 2 decimal places) Product FProduct Overhead cost per unit

Explanation / Answer

Product F Product G Activity cost pool Estimated Overhead costs $ Total Expected Activity Activity Rate $ Estimated Activity Overhead cost $ Estimated Activity Overhead cost $ (A) (B) (C) (D)=(B)/(C) (E) (F)=(D)x(E) (G) (H)=(D)x(G) Machine set ups 20280 260 78.00 156 12168 104 8112 Purchase orders 99360 2160 46.00 756 34776 1404 64584 General factory 58880 2560 23.00 1330 30590 1230 28290 Total overhead cost $ 77534 100986 Number of units produced 2600 12000 Overhead cost per unit $ 29.82 8.42

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