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QUESTION 2 Larner Corporation is a diversified manufacturer of industrial goods. The company's activity based costing system has the following six activity cost pools and
QUESTION 2 Larner Corporation is a diversified manufacturer of industrial goods. The company's activity based costing system has the following six activity cost pools and activity rates: Activity cost pool Activity rates Labor related $7.00 per direct labor hour Machine related E3.00 per machine hour Machine setups E40.00 per setup Production orders E160.00 per order Shipments E120.00 per shipment General factory E4.00 per direct labor hour. Cost and activity data have been supplied to the following products: J78 10 B52 Direct material cost per unit E6.50 E31.00 Direct labor cost per unit E3.75 E6.00 Number of units produced per year 4,000 100 Direct labor hours 1,000 40 Machine hours 3,200 30 Machine setups 5 1 Production orders 5 1 Shipments General factory 1000 40 Required: Compute the unit product cost of each of the products listed above
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