Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $355,840 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below:
|
|
Product C
|
Product D
|
|
Estimated volume
|
|
2,000
|
units
|
|
|
2,700
|
units
|
|
|
Direct labor-hours per unit
|
|
4.50
|
hours
|
|
|
1.80
|
hour
|
|
|
Direct materials cost per unit
|
$
|
24.00
|
|
|
$
|
26.60
|
|
|
|
Direct labor cost per unit
|
$
|
34.00
|
|
|
$
|
11.60
|
|
|
|
|
|
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:
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|
Activities
|
Estimated
Overhead
Costs
|
Expected Activity
|
|
Product C
|
Product D
|
Total
|
|
Machine setups
|
$
|
22,230
|
180
|
210
|
390
|
|
Purchase orders
|
|
162,250
|
1,250
|
1,500
|
2,750
|
|
General factory
|
|
171,360
|
5,000
|
3,160
|
8,160
|
| |
|
|
|
|
|
|
Total
|
$
|
355,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.)
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|
|
Product C
|
Product D
|
|
Unit product cost
|
$
|
$
|