Determine the overhead costs for product lines


Response to the following problem:

Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,420 units of Product F and 2,660 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 Pool    Total Cost          Product F         Product G

Total Machine setups      $ 34,500         85 setups         191 setups           276 setups

Purchase orders            $ 219,960        1,090 orders      1,730 orders        2,820 orders

General factory              $ 143,640         3,060 hours       4,500 hours         7,560 hours

Required: Using the activity-based costing approach, determine the overhead cost for each product line.

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Cost Accounting: Determine the overhead costs for product lines
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