Larner Corporation manufactures two types of light fixtures for industrial use, the J78 and the W52. The company's ABC system contains the following six activity cost pools and activity rates:

Activity data have been supplied for the following products:

Required

Determine the total overhead cost that would be assigned to each of the products listed above in the ABC system.

Transcribed Image Text:

Activity Rates Activity Cost Pool Supporting direct labour 14.00 per direct labour-hour $6.00 per machine-hour $80.00 per setup Machine processing. Machine setups .. $60.00 per order $40.00 per shipment $400.00 per product Production orders Shipments Product-sustaining. Total Expected Activity J78 W52 Direct labour-hours Machine-hours. . Machine setups 100 40 20 30 3 Production orders 2 1 Shipments Product-sustaining. 5