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 | $ | 5.00 | per direct labor-hour |
| Machine-related | $ | 10.00 | per machine-hour |
| Machine setups | $ | 30.00 | per setup |
| Production orders | $ | 200.00 | per order |
| Shipments | $ | 140.00 | per shipment |
| General factory | $ | 10.00 | per direct labor-hour |
Cost and activity data have been supplied for the following products:
| J78 | B52 | |||
| Direct materials cost per unit | $ | 5.50 | $ | 20.00 |
| Direct labor cost per unit | $ | 4.25 | $ | 7.00 |
| Number of units produced per year | 2,000 | 200 |
| Total Expected Activity | ||
| J78 | B52 | |
| Direct labor-hours | 1,500 | 50 |
| Machine-hours | 2,600 | 30 |
| Machine setups | 6 | 1 |
| Production orders | 8 | 1 |
| Shipments | 8 | 1 |
Required: Compute the unit cost of each product listed above. (Round your answers to 2 decimal places.)
J78 B52Unit Product Cost
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
2nd edition
134730372, 134730370, 978-0134730370
