Question: The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based
The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Activity Cost Pools Machine setups Purchase orders Order size Total Unit product cost Estimated Overhead Product C Costs $ 13,790 80,040 100,080 $ 193,910 Product C 270 1,140 12,880 Product D Expected Activity Product D Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.) 280 1,480 11,020 Total 550 2,620 23,900
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