Exercise 4-3 (Static) Compute ABC Product Costs (L04-3] 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 tes Labor related $ 7.00 per direct labor-hour Machine-related $ 3.00 per machine-hour Machine setups $ 40.00 per setup Production orders $160.00 per order Shipments $ 120.00 per shipment General factory $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year $6.50 $ 3.75 4,000 B52 $31.00 $ 6.00 100 Direct labor-hours Machine-hours Machine setups Production orders Shipments Total Expected Activity 378 1.000 40 3,200 30 5 1 5 1 10 1 Required: Compute the unit product cost of each product listed above (Do not round intermediate calculations. Round your answers to 2 decimal places.) J75 B52 Unit product cout Expected Activity Cost Pool Activity Theatre Overhead cost Expected Activity Labor related Direct labor-hours $ 156,000 26,000 LHS Purchase orders Number of orders $ 11,000 220 orders Parts management Number of part types $ 80,000 100 part types Board etching Number of boards $90,000 2,000 boards General factory Machine-hours $ 180,00 20,000 ms Required: 1. Compute the activity rate for each of the activity cost pools 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Product A Product Product C Product D Labor-related (DLHS) 6,000 11,000 4,000 5,000 Purchase orders (orders) 60 30 40 90 Parts management (part types) 30 15 40 Board etching (boards) 500 900 General factory (s) 3,000 3,000 3,000 6.000 Using the ABC data, determine the total amount of overhead cost assigned to each product. 15 500 Complete this question by entering your answers in the tabs below. Required 1 Required 2 per DLH Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related Purchase orders per order Parts management per part type Board etching per board General factory ho per MH Required 2 > Expected Activity Cost Pool Activity Measure Overhead Cost Expected Activity Labor-related Direct labor-hours $ 156,000 26,000 DLHS Purchase orders Number of orders $ 11,000 220 orders Parts management Number of part types $ 80,000 100 part types Board etching Number of boards $ 90,000 2. boards General factory Machine-hours $ 180,000 20.000 Mis Required: 1. Compute the activity rate for each of the activity cost pools 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Product Product Product Product Labor related (DHS) 6,000 11,000 4,000 5.ON Purchase orders (orders) 60 30 40 90 Parts management (part types) 30 15 40 15 Board etching (boards) 500 900 600 General factory (104) 3,000 3,000 6,00 Using the ABC data, determine the total amount of overhead cost assigned to each product. 9,000 ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Assigned Assigned Product A Product B Product Product D Activity Cost Pool Labor-related (DLH) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MH) Total N Exercise 4-9 (Static) Compute and Use Activity Rates to Determine the costs of Serving Customers [LO4-2, L04-3] Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries 5400.000 5,000 deliveries Manual order processing Number of manual orders 300,000 4,000 orders Electronic order processing Number of electronic orders 200,000 12,500 orders Line Item picking Number of line itens picked 500.000 400, line items Total selling and administrative expenses $ 1,400,000 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General Activity Measure Mueber of deliveries Number of manual orders Number of electronic orders Number of line Itens picked Activity City County General General 10 20 o 40 10 100 260 Required: 1. Compute the activity rate for each activity cost pool 2. Compute the total activity costs that would be assigned to City General and County General Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places) Activity Cost Pool Customer dollveres Manual order processing Electronic order processing Line item picking Activity Rate per delivery per manual order per electronic order per line item picked the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line Ites picking Total selling and administrative expenses Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked Total cost $400,000 300, 200,00 500, 5 1,400,000 Total Activity 5,000 deliveries 24,000 orders 12,500 orders 400,000 line items Med Max gathered the data below for two of the many hospitals that it serves-Cny General and County General Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked Activity City County General General 10 20 40 10 100 260 Required: 1. Compute the activity rate for each activity cost pool 2. Compute the total activity costs that would be assigned to City General and County General Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total activity costs that would be assigned to City General and County General. (Do not round Intermediate calculations.) Activity Cost Pool City General ABC Cost County General ABC Cost Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs