EXERCISE 4–3 Compute ABC Product Costs LO4–3 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 Activity Rates

. . . . . . . . . . . $7.00 per direct labor-hour

. . . . . . . . . $3.00 per machine-hour

. . . . . . . . . $40.00 per setup

. . . . . . . $160.00 per order

. . . . . . . . . . . . . $120.00 per shipment General factory page 177 Activity Cost Activity Rates

. . . . . . . . . $4.00 per direct labor-hour Cost and activity data have been supplied for the following products:

Required:

Compute the unit product cost of each product listed above.