Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 6.00 per direct labor-hour
Machine-related $ 10.00 per machine-hour
Machine setups $ 50.00 per setup
Production orders $ 100.00 per order
Shipments $ 120.00 per shipment
General factory $ 10.00 per direct labor-hour

Cost and activity data have been supplied for the following products:

J78 B52
Direct materials cost per unit $ 4.50 $ 26.00
Direct labor cost per unit $ 5.00 $ 6.00
Number of units produced per year 2,000 100

Total Expected Activity

J78 B52
Direct labor-hours 1,400 30
Machine-hours 2,400 30
Machine setups 8 1
Production orders 8 1
Shipments 6 1

Required:
Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.)

J78 B52

Unit product cost ____ ______

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Algorithms Understanding Algorithmic Systems From The Outside In Foundations And Trends

Authors: Danaƫ Metaxa, Joon Sung Park, Ronald E Robertson, Karrie Karahalios, Christo Wilson, Jeff Hancock, Christian Sandvig

1st Edition

1680839160, 978-1680839166

More Books

Students also viewed these Accounting questions