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 expected activity
product F product G total
machine setups 10,400 80 180 260
purchase orders 88,440 810 1,200 2,010
general factory 65,340 2,340 3,600 5,940
Using the activity-based costing approach
1. Determine the overhead rate for each of the three cost pools.
2. Determine the total amount of overhead charged to Product G.
3. Determine the overhead cost per unit for Product G..