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:
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 Activity Rates $ 7.00 per direct labor-hour $7.00 per machine-hour $ 40.00 per setup $ 100.00 per order $ 100.00 per shipment $7.00 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 378 $5.00 852 $ 34.00 $ 4.50 5,000 $ 5.00 200 Total Expected Activity 378 852 Direct labor-hours 1,200 50 Machine-hours 3,200 20 Machine setups 5: Production orders 7 Shipments 5. mmm 3
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