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Larner Corporation manufactures two types of light fixtures for industrial use, the J78 and the W52. The companys ABC system contains the following six activity
Larner Corporation manufactures two types of light fixtures for industrial use, the J78 and the W52. The companys ABC system contains the following six activity cost pools and activity rates:
Activity Cost Pool | Activity Rates | |||
Supporting direct labour | $ | 14.00 | per direct labour-hour | |
Machine processing | $ | 6.00 | per machine-hour | |
Machine setups | $ | 80.00 | per setup | |
Production orders | $ | 60.00 | per order | |
Shipments | $ | 40.00 | per shipment | |
Product-sustaining | $ | 400.00 | per product | |
Activity data have been supplied for the following products:
Total Expected Activity | ||||||
J78 | W52 | |||||
Direct labour-hours | 100 | 40 | ||||
Machine-hours | 20 | 30 | ||||
Machine setups | 3 | 1 | ||||
Production orders | 2 | 1 | ||||
Shipments | 5 | 1 | ||||
Product-sustaining | 1 | 1 | ||||
Required:
Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.
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