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 | $ | 9.00 | per direct labor-hour |
| Machine-related | $ | 7.00 | per machine-hour |
| Machine setups | $ | 60.00 | per setup |
| Production orders | $ | 200.00 | per order |
| Shipments | $ | 100.00 | per shipment |
| General factory | $ | 7.00 | per direct labor-hour |
Cost and activity data have been supplied for the following products:
| J78 | B52 | ||||||
| Direct materials cost per unit | $ | 3.00 | $ | 36.00 | |||
| Direct labor cost per unit | $ | 5.00 | $ | 7.00 | |||
| Number of units produced per year | 4,000 | 200 | |||||
| Total Expected Activity | ||||||
| J78 | B52 | |||||
| Direct labor-hours | 800 | 40 | ||||
| Machine-hours | 3,300 | 20 | ||||
| Machine setups | 3 | 3 | ||||
| Production orders | 8 | 3 | ||||
| Shipments | 12 | 3 | ||||
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Ethical Obligations And Decision Making In Accounting Text And Cases
Authors: Steven Mintz, Roselyn Morris
2nd Edition
0078025281, 9780078025280
