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Darter Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,600 units of Product F and 6,000 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 Costs Expected Activity
Product F Product G TotalMachine setups $10,400 80 180 260Purchase orders $88,440 810 1,200 2,010General factory $65,340 2,340 3,600 5,940
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product.
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