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8. Larner Corporation is a diversified manufacturer of industrial goods. The activity-based costing system contains the following six activity cost ates: Activity Cost Pool and
8. Larner Corporation is a diversified manufacturer of industrial goods. The activity-based costing system contains the following six activity cost ates: Activity Cost Pool and activity Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates S 8.00 per direct labor-hour S 10.00 per machine-hour S 40.00 per setup S 90.00 per order S 190.00 per shipment S 13.00 per direct labor-hour Cost and activity data have been supplied for the following products: 378 B52 Direct materials cost per unit Direct labor cost per unit Number of units produced per year S 7.00 S12.00 200 S 47.00 S 10.00 100 Total Expected Activity 78 B52 1,000 40 2,000 20 Direct labor-hours Machine-hours Machine setups Production orders Shipments What is the unit product cost of B52 listed above? a. $92 b. $251 c. $77 d. $219 e. None of the above 20 3 30 3 10 3
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