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 | $ | 5.00 | per machine-hour |
| Machine setups | $ | 30.00 | per setup |
| Production orders | $ | 200.00 | per order |
| Shipments | $ | 160.00 | 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 | $ | 4.00 | $ | 39.00 | |||
| Direct labor cost per unit | $ | 4.00 | $ | 6.00 | |||
| Number of units produced per year | 2,000 | 200 | |||||
| Total Expected Activity | ||||||
| J78 | B52 | |||||
| Direct labor-hours | 1,400 | 30 | ||||
| Machine-hours | 2,900 | 30 | ||||
| Machine setups | 6 | 3 | ||||
| Production orders | 4 | 3 | ||||
| Shipments | 5 | 3 | ||||
Compute the unit product cost of each product listed above.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Courageous Auditing Beyond Compliance Towards Being A Catalyst For Change
Authors: Kathy Rees
1st Edition
0648958108, 978-0648958109
