Question
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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