Darter Company manufactures two products, Product F and Product G. The company e

Question

Darter Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,600 units of Product F and 5,400 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%u2019s three activity cost pools are given below for the current year:

Estimated Activity

Using the activity-based costing approach, determine the overhead cost per unit for each product. Fill in all steps.

Darter Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,600 units of Product F and 5,400 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%u2019s three activity cost pools are given below for the current year:

Explanation / Answer

Hi,

Please find the answers as follows:

Part A:

Part B:

Overhead Cost Per Unit (F) = 62795/1600 = 39.25

Overhead Cost Per Unit (G) = 90409/5400 = 16.74

Thanks.

Activity Cost Pool Rate Machine setups 39 Purchase orders 40 General factory 11

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