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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 | Activity Rates | ||
| Labor-related | $ | 6.00 | per direct labor-hour |
| Machine-related | $ | 10.00 | per machine-hour |
| Machine setups | $ | 50.00 | per setup |
| Production orders | $ | 100.00 | per order |
| Shipments | $ | 120.00 | per shipment |
| General factory | $ | 10.00 | per direct labor-hour |
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| Cost and activity data have been supplied for the following products: |
| J78 | B52 | |||
| Direct materials cost per unit | $ | 4.50 | $ | 26.00 |
| Direct labor cost per unit | $ | 5.00 | $ | 6.00 |
| Number of units produced per year | 2,000 | 100 | ||
| Total Expected Activity | |||
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| |||
| J78 | B52 | ||
| Direct labor-hours | 1,400 | 30 | |
| Machine-hours | 2,400 | 30 | |
| Machine setups | 8 | 1 | |
| Production orders | 8 | 1 | |
| Shipments | 6 | 1 | |
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| Required: |
| Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places.) |
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Introduction To Managerial Accounting
Authors: Peter C. Brewer
Custom Edition
0077842987, 978-0077842987
