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Exercise 3-3 Compute ABC Product Costs [LO3-3 Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six
Exercise 3-3 Compute ABC Product Costs [LO3-3
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 Pool | Activity Rates | ||
Labor-related | $ | 8.00 | per direct labor-hour |
Machine-related | $ | 9.00 | per machine-hour |
Machine setups | $ | 80.00 | per setup |
Production orders | $ | 200.00 | per order |
Shipments | $ | 190.00 | per shipment |
General factory | $ | 9.00 | per direct labor-hour |
|
Cost and activity data have been supplied for the following products: |
J78 | B52 | |||
Direct materials cost per unit | $ | 7.50 | $ | 44.00 |
Direct labor cost per unit | $ | 4.50 | $ | 4.00 |
Number of units produced per year | 1,000 | 400 | ||
Total Expected Activity | |||
| |||
J78 | B52 | ||
Direct labor-hours | 1,100 | 30 | |
Machine-hours | 2,300 | 30 | |
Machine setups | 5 | 2 | |
Production orders | 4 | 2 | |
Shipments | 12 | 2 | |
|
Required: |
Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.) |
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