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 $ 10.00 per direct labor-hour $ 6.00 per machine-hour $ 80.00 per setup $ 200.00 per order $ 200.00 per shipment $ 6.00 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 J78 $ 2.50 $ 5.00 4,000 B52 $34.00 $10.00 200 Direct labor-hours Machine-hours Machine setups Production orders Shipments Total Expected Activity J78 B52 1,100 30 2,300 40 6 2 3 2. 5 2 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 390,600 $ 8,600 $ 94,160 $ 60,550 $ 220, 800 Expected Activity 43,400 DLHS 215 orders 107 part types 1,730 boards 18,400 MHs Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHS) 5,800 28,400 4,800 4,400 Purchase orders (orders) 71 20 43 81 Parts management (part types) 28 20 42 17 Board etching (boards) 310 770 650 0 General factory (MHS) 2,500 6,400 4,000 5,500 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Labor-related Purchase orders Activity Rate per DLH per order per part type per board per MH Parts management Board etching General factory Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 390,600 $ 8,600 $ 94,160 $ 60,550 $ 220, 800 Expected Activity 43,400 DLHS 215 orders 107 part types 1,730 boards 18,400 MHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Expected Activity Product A Product B Product C Product D 5,800 28,400 4,800 4,400 71 20 43 81 28 20 42 17 310 650 0 2,500 6,400 4,000 5,500 770 Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product B Product C Product A Product D Activity Cost Pool Labor-related (DLHs) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHS) Total
