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