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E-7-4 - Please explain how you arrived at your answers. Thank you! Exercise 7-4 Second-Stage Allocation [LO4] Larner Corporation is a diversified manufacturer of industrial

E-7-4 - Please explain how you arrived at your answers. Thank you!

Exercise 7-4 Second-Stage Allocation [LO4]

Larner Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool Activity Rates
Supporting direct labor $9 per direct labor-hour
Machine processing $3 per machine-hour
Machine setups $40 per setup
Production orders $150 per order
Shipments $120 per shipment
Product sustaining $775 per product

Activity data have been supplied for the following two products:

Total Expected Activity

J78 W52
Direct labor-hours 1,125 40
Machine-hours 2,600 30
Machine setups 11 1
Production orders 11 1
Shipments 22 1
Product sustaining 1 1

Required:

Determine the total overhead cost that would be assigned to each of the products. (Omit the "$" sign in your response.)

Activity Cost Pool J78 W52
Supporting direct labor $ $
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost $ $

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