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

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Accounting

Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,300 units of Product F and 1,700 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:

Activity Cost Pool Estimated Overhead Cost Expected Activity
Product F Product G Total
Machine setups $ 14,300 132 setups 88 setups 220 setups
Purchase orders $ 84,480 896 orders 1,664 orders 2,560 orders
Order size $ 24,800 1,290 hours 1,190 hours 2,480 hours

Required:

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

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