Question

Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 3,300 units of Product F and 3,700 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		Expected Activity
Activity Cost Pool	Overhead Cost		Product F		Product G		Total
Machine setups	$	20,400	144	setups	96	setups	240	setups
Purchase orders	$	129,320	854	orders	1,586	orders	2,440	orders
Order size	$	75,600	1,310	hours	1,210	hours	2,520	hours

Required:

Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.)

Answer 1

Please find below the answer
Statementshowing Computations
Particulars	Amount a	Activity Driver	No of Activity b	Cost per activity c= a/b	No of Activity of Product F d	Cost Allocated to Product F c*d	No of Activity of Product G e	Cost Allocated to Product G c*e
Machine setups	20,400.00	Setups	240.00	85.00	144.00	12,240.00	96.00	8,160.00
Purchase orders	129,320.00	Orders	2,440.00	53.00	854.00	45,262.00	1,586.00	84,058.00
Order Size	75,600.00	Hours	2,520.00	30.00	1,310.00	39,300.00	1,210.00	36,300.00
Total Overhead	225,320.00					96,802.00		128,518.00
No of units						3,300.00		3,700.00
Overhead Cost per unit						29.33		34.73