Question
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
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 $ 4.00 per direct labor-hour Machine-related $ 7.00 per machine-hour Machine setups $ 80.00 per setup Production orders $ 100.00 per order Shipments $ 100.00 per shipment General factory $ 7.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit $ 2.50 $ 21.00 Direct labor cost per unit $ 4.00 $ 8.00 Number of units produced per year 2,000 100 Total Expected Activity J78 B52 Direct labor-hours 1,400 50 Machine-hours 3,900 50 Machine setups 7 1 Production orders 7 1 Shipments 8 1 Required:
Compute the unit product cost of each product listed above
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