Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains...
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Accounting
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool
Activity Rates
Labor-related
$
7.00
per direct labor-hour
Machine-related
$
7.00
per machine-hour
Machine setups
$
30.00
per setup
Production orders
$
200.00
per order
Shipments
$
140.00
per shipment
General factory
$
7.00
per direct labor-hour
Cost and activity data have been supplied for the following products:
J78
B52
Direct materials cost per unit
$
5.50
$
32.00
Direct labor cost per unit
$
4.75
$
9.00
Number of units produced per year
4,000
100
Total Expected Activity
J78
B52
Direct labor-hours
1,200
30
Machine-hours
2,200
50
Machine setups
6
1
Production orders
5
1
Shipments
7
1
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations.Round your answers to 2 decimal places.)
J78
B52
Unit Product Cost
Answer & Explanation
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