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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 | $ | 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 ____ ______
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