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Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3] Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following
Exercise 4-3 (Algo) Compute ABC Product Costs [LO4-3]
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 | $ 5.00 | per direct labor-hour |
Machine-related | $ 6.00 | per machine-hour |
Machine setups | $ 40.00 | per setup |
Production orders | $ 100.00 | per order |
Shipments | $ 120.00 | per shipment |
General factory | $ 6.00 | per direct labor-hour |
Cost and activity data have been supplied for the following products:
J78 | B52 | |
---|---|---|
Direct materials cost per unit | $ 6.00 | $ 26.00 |
Direct labor cost per unit | $ 5.00 | $ 6.00 |
Number of units produced per year | 1,000 | 100 |
Total Expected Activity | ||
---|---|---|
J78 | B52 | |
Direct labor-hours | 1,300 | 40 |
Machine-hours | 2,200 | 30 |
Machine setups | 5 | 2 |
Production orders | 7 | 2 |
Shipments | 6 | 2 |
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Unit product cost of J78:
Unit product cost of B52:
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