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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 Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Cost and activity data have been supplied for the following products: Activity. Pates $ 8.00 per direct labor-hour $ 8.00 per machine-hour $ 40.00 per setup $ 100.00 per order $ 190.00 per shipment $ 0.00 per direct labor-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year Direct labor-hours Machine-hours Total Expected Activity 378 1,300 2.800 B52 40 20 378 $ 7.50 $.3.50 2,000 B52 $ 47.00 $ 10.00 100
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