Question

Alshon Jeffery is the president of Agholor Company. Agholor manufactures two products, Leather Footballs and Synthetic Footballs. The company expects to produce and sell 3,200 units of Leather Footballs and 18,000 units of Synthetic Footballs 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 Costs Expected Activity Leather Footballs Synthetic Footballs Total Machine setups $ 18,480 132 88 220 Purchase orders $ 124,800 840 1,560 2,400 General factory $ 71,920 1,290 1,190 2,480 Required: Determine the overhead cost per unit for each product using the activity-based costing approach. (Do not round your intermediate calculations. Round your final answers to 2 decimal places.)

Leather FootballsSynthetic FootballsOverhead cost per unit

Answer 1

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	A	B	C	D	E=A/D	E*B	E*C
						Overhead Allocation
Acticity Cost Pool	Estimated Overhead	Leather	Synthetic	Total	Rate per Activity	Leather	Synthetic
Total Machine Setups	18480	132	88	220	84	11088	7392
Purchase Orders	124800	840	1560	2400	52	43680	81120
General Factory	71920	1290	1190	2480	29	37410	34510
Total	215200					92178	123022
	Leather	Synthetic
Total Overhead Allocated A	92178	123022
Production B	3200	18000
Overhad Cost per unit A/B	28.81	6.83