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A Company manufactures two products, Product F and Product G. The company expects to produce...

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Accounting

A Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Below are current year data for the company's three activity cost pools:

Total Activity Activity

Cost Pool Total Cost Product F Product G Total

Machine setups $ 10,800 80 setups 100 setups 180 setups

Purchase orders $ 77,520 510 orders 1,010 orders 1,520 orders

General factory $ 75,920 2,240 hours 3,600 hours 5,840 hours

Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.

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