Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Get quick and reliable solutions to your questions from knowledgeable professionals on our comprehensive Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,350 units of Product F and 2,250 units of Product G during the current year. Data relating to the companyâs three activity cost pools are given below for the current year:

Total Activity
Activity Cost Pools Total Cost Product F Product G Total
Machine setups $30,771 124 setups 139 setups 263 setups
Purchase orders $188,360 780 orders 1,990 orders 2,770 orders
Order size $114,880 3,120 hours 4,060 hours 7,180 hours

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

Sagot :

Answer and Explanation:

The computation is shown below:

But before that the activity rate is

Activity cost pools      Total       Total      Activity rate

Machine setups          $30,771     263    $117

Purchase orders        $188,360   2,770  $68

Order size                  $114,880   7,180   $16

Now the overhead cost per unit is

Particulars              Product G      Product F

Machine setup        $14,508        $16,263

                      (124 × $117)                (139 × $117)

Purchased orders $53,040         $135,320

                   (780 ×  $68)                (1,990 × $68)

Order size       $49,920                $64,960

                 (3,120 × $16)          (4,060 × $16)

Total overhead  $117,468         $216,543

Units                   2,350                2,250

Overhead cost

per unit             $49.98              $96.24

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.