Question
arner 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
arner 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 | $ 40.00 | per setup |
| Production orders | $ 100.00 | per order |
| Shipments | $ 100.00 | 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 | $ 5.00 | $ 34.00 |
| Direct labor cost per unit | $ 4.50 | $ 5.00 |
| Number of units produced per year | 5,000 | 200 |
| Total Expected Activity | ||
|---|---|---|
| J78 | B52 | |
| Direct labor-hours | 1,200 | 50 |
| Machine-hours | 3,200 | 20 |
| Machine setups | 5 | 3 |
| Production orders | 7 | 3 |
| Shipments | 5 | 3 |
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) The unit product cost of J78 and B52 :
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Authors: Thian Thima
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