Bangor 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. Data relating to the company's three activity cost pools are given below for the current year:
Total Activity
Activity Cost PoolTotal Cost Product F Product G Total
Machine setups $\$ 10,800 \quad 80$ setups 100 setups 180 setups
Purchases orders$ \$77,520 \quad 510$ orders 1,010 orders 1,520 orders
General Factory $\$ 75,920 \quad 2,240$ hours 3,600 hours 5,840 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.

Question

Bangor 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. Data relating to the company's three activity cost pools are given below for the current year:
Total Activity
Activity Cost PoolTotal Cost Product F Product G Total
 Machine setups $\$ 10,800 \quad 80$ setups 100 setups 180 setups
Purchases orders$ \$77,520 \quad 510$ orders 1,010 orders 1,520 orders
General Factory $\$ 75,920 \quad 2,240$ hours 3,600 hours 5,840 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.

Quizplus · Accepted Answer

The Answer of Bangor 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. Data relating to the company's three activity cost pools are given below for the current year:
Total Activity
Activity Cost PoolTotal Cost Product F Product G Total
 Machine setups $\$ 10,800 \quad 80$ setups 100 setups 180 setups
Purchases orders$ \$77,520 \quad 510$ orders 1,010 orders 1,520 orders
General Factory $\$ 75,920 \quad 2,240$ hours 3,600 hours 5,840 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.

Bangor Company Manufactures Two Products, Product F and Product G $10,80080\$ 10,800 \quad 80$10,80080

Bangor Company Manufactures Two Products, Product F and Product G $\$ 10,800 \quad 80$