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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 | $ | 7.00 | per direct labor-hour |
Machine-related | $ | 5.00 | per machine-hour |
Machine setups | $ | 40.00 | per setup |
Production orders | $ | 200.00 | per order |
Shipments | $ | 120.00 | per shipment |
General factory | $ | 5.00 | per direct labor-hour |
Cost and activity data have been supplied for the following products:
J78 | B52 | ||||||
Direct materials cost per unit | $ | 7.00 | $ | 50.00 | |||
Direct labor cost per unit | $ | 4.00 | $ | 10.00 | |||
Number of units produced per year | 2,000 | 100 | |||||
Total Expected Activity | ||||||
J78 | B52 | |||||
Direct labor-hours | 1,000 | 20 | ||||
Machine-hours | 3,400 | 20 | ||||
Machine setups | 8 | 2 | ||||
Production orders | 6 | 2 | ||||
Shipments | 7 | 2 | ||||
Required:
Compute the unit product cost of each product listed above.
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