I usually do this using zip:

>>> df = pd.DataFrame([[i] for i in range(10)], columns=['num'])
>>> df
    num
0    0
1    1
2    2
3    3
4    4
5    5
6    6
7    7
8    8
9    9

>>> def powers(x):
>>>     return x, x**2, x**3, x**4, x**5, x**6

>>> df['p1'], df['p2'], df['p3'], df['p4'], df['p5'], df['p6'] = \
>>>     zip(*df['num'].map(powers))

>>> df
        num     p1      p2      p3      p4      p5      p6
0       0       0       0       0       0       0       0
1       1       1       1       1       1       1       1
2       2       2       4       8       16      32      64
3       3       3       9       27      81      243     729
4       4       4       16      64      256     1024    4096
5       5       5       25      125     625     3125    15625
6       6       6       36      216     1296    7776    46656
7       7       7       49      343     2401    16807   117649
8       8       8       64      512     4096    32768   262144
9       9       9       81      729     6561    59049   531441

An possible solution is to make the expanding part of the function, and use GroupBy.apply:

def foo1(_df):
    return _df['x1'].expanding().max() * _df['x2'].expanding().apply(lambda x: x[-1], raw=True)

df['foo_result'] = df.groupby('group').apply(foo1).reset_index(level=0, drop=True)
print (df)
  group  time   x1  x2  foo_result
0     A     1   10   1        10.0
3     B     1  100   2       200.0
1     A     2   40   2        80.0
4     B     2  200   0         0.0
2     A     3   30   1        40.0
5     B     3  300   3       900.0

This is not a direct solution to the problem of applying a dataframe function to an expanding dataframe, but it achieves the same functionality.