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 | $ | 10.00 | per direct labor-hour |
| Machine-related | $ | 10.00 | per machine-hour |
| Machine setups | $ | 70.00 | per setup |
| Production orders | $ | 100.00 | per order |
| Shipments | $ | 190.00 | 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 | $ | 6.00 | $ | 41.00 | |||
| Direct labor cost per unit | $ | 5.00 | $ | 9.00 | |||
| Number of units produced per year | 1,000 | 100 | |||||
| Total Expected Activity | ||||||
| J78 | B52 | |||||
| Direct labor-hours | 1,300 | 40 | ||||
| Machine-hours | 4,000 | 30 | ||||
| Machine setups | 4 | 1 | ||||
| Production orders | 3 | 1 | ||||
| Shipments | 6 | 1 | ||||
Required:
Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
