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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 Rates Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory $ 10.00 per direct labor-hour $ 6.00 per machine-hour 80.00 per setup $200.00 per order $200.00 per shipment $ 6.00 per direct labor-hour Cost and activity data have been supplied for the following products J78 B52 Direct materials cost per unit Direct labor cost per unit Number of units produced per year $ 2.50 34.00 $ 5.00 10.00 4,000 200 Total Expected Activity Direct labor-hours Machine-hours Machine setups Production orders Shipments J78 1,100 2,300 6 3 B52 30 40
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