Alphabet Company manufactures two products, Product Fand Product G. The company expects to produce and sell...

Transcribed Image Text:

Alphabet Company manufactures two products, Product Fand Product G. The company expects to produce and sell 2,900 units of Product F and 3,300 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: Estimated Expected Activity Activity Cost Pool Overhead Cost Product F Product G Total Machine setups $ 19,440 144 setups 96 setups 240 setups Purchase orders $ 111,720 798 orders 1,482 orders 2,280 orders General factory $ 65,520 1,310 hours 1,210 hours 2,520 hours Required: Using the activity-based costing approach, compute the activity rate for each activity then determine the total overhead cost per unit for each product. Show all work to earn credit. Alphabet Company manufactures two products, Product Fand Product G. The company expects to produce and sell 2,900 units of Product F and 3,300 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: Estimated Expected Activity Activity Cost Pool Overhead Cost Product F Product G Total Machine setups $ 19,440 144 setups 96 setups 240 setups Purchase orders $ 111,720 798 orders 1,482 orders 2,280 orders General factory $ 65,520 1,310 hours 1,210 hours 2,520 hours Required: Using the activity-based costing approach, compute the activity rate for each activity then determine the total overhead cost per unit for each product. Show all work to earn credit.

Answer rating: 100% (QA)

part 1 Part 2 Activity cost Overhe... View the full answer