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Exercise 4-3 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

Exercise 4-3 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 $ 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Exercise 4-3 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 $ 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

unit product cost: for J78 and B52

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