Can someone please explain how to do the following?

Baxter Company manufactures two products, Product F and Product G4. 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 ABC method to compute unit product costs. Data relating to the company's three activity cost pools are given below for the current year:

Activity Cost Pool
Estimated Overhead Costs
Estimated 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
On the basis of the given data, complete the following:

Determine the overhead cost per unit for each product using ABC approach.

The activity rates for each activity cost pool.

To determine the overhead cost per unit for each product using the Activity-Based Costing (ABC) approach, you need to follow these steps:

Step 1: Calculate the overhead cost allocation for each activity cost pool.

To calculate the overhead cost allocation for each activity cost pool, you divide the estimated overhead costs for each activity by the estimated activity level.

For Machine setups:
Overhead Cost Allocation = Estimated Overhead Costs for Machine setups / Total Estimated Activity
= $10,400 / 260
= $40 per unit

For Purchase orders:
Overhead Cost Allocation = Estimated Overhead Costs for Purchase orders / Total Estimated Activity
= $88,440 / 2,010
= $44 per unit

For General factory:
Overhead Cost Allocation = Estimated Overhead Costs for General factory / Total Estimated Activity
= $65,340 / 5,940
= $11 per unit

Step 2: Allocate the overhead costs to each product based on their respective activity levels.

To allocate the overhead costs to each product, you multiply the overhead cost allocation for each activity by the activity level for each product.

For Product F:
Overhead Cost for Product F = Machine setups activity rate * Activity level for Product F +
Purchase orders activity rate * Activity level for Product F +
General factory activity rate * Activity level for Product F
= $40 * 80 + $44 * 810 + $11 * 2,340
= $3,200 + $35,640 + $25,740
= $64,580

Overhead Cost per unit for Product F = Total Overhead Costs for Product F / Units Produced for Product F
= $64,580 / 2,600
= $24.84 per unit

For Product G:
Overhead Cost for Product G = Machine setups activity rate * Activity level for Product G +
Purchase orders activity rate * Activity level for Product G +
General factory activity rate * Activity level for Product G
= $40 * 180 + $44 * 1,200 + $11 * 3,600
= $7,200 + $52,800 + $39,600
= $99,600

Overhead Cost per unit for Product G = Total Overhead Costs for Product G / Units Produced for Product G
= $99,600 / 6,000
= $16.60 per unit

Therefore, the overhead cost per unit for Product F is $24.84, and for Product G is $16.60.

Additionally, to determine the activity rates for each activity cost pool, you can divide the estimated overhead costs for each activity by their respective estimated activity level as stated in the table provided.